Educational Finance in Thailand - UNESCO Bangkok

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Final Report, Volume II/3 Anthony. Cresswell: Educational Finance UNESCO-PROAP TA 2996-THA Education Management and Finance Study July 1999 to reduce budget allocations to education for the current fiscal year (described below in Section 3.2). While these have been substantial budget reductions, the short-term impact on the educational system may be relatively small, due in large part to the budget reduction strategies employed, as described in a later section. In relation to the second theme, the impact of the crisis on persons and households has reduced abilities to bear the costs of education due to increased unemployment and under-employment, higher prices for some goods and services, and increased mobility. The expected results for education would be loss of enrollments due to inability to pay tuition and fees, or late payment of tuition and fees, increased student loan demand and default rates, or shifts in enrollments from higher cost private schools to public schools where available. Some of these impacts have been observed and are discussed in Section 1.3.2 below. In regard to the third theme, there is a close connection between the immediate responses to the crisis, especially in terms of the Social Sector Program Loan (SSPL), and the more general finance and more general education reform initiatives currently underway. Some of the conditionalities incorporated in the SSPL are significant finance reforms in their own right, intended to promote greater equity and efficiency in the educational system, such as fiscal autonomy for higher education institutions. And the more general policy initiatives, such as expanding the scope of free basic education to the first twelve years, and decentralizing administration, can help ameliorate crisis impacts as well as achieve long-term reform goals. Because the SSPL conditions and the other reforms are closely related, they are both incorporated in the review. b. It should be noted that the reform process and budget decision making are ongoing in Thailand. Therefore the actual budget allocations for the current or future fiscal year are subject to changes at any time. Similarly, the specific details of reform initiatives and policy are under development as well. As a result, the budget figures and descriptions of reform initiatives reported here might not be consistent with current state of affairs in Thailand. Revisions will be made as necessary. 1.3.2. Budget adjustments a. As a result of the crisis, there was a reduction in the original education budget allocation for the 1998 fiscal year. The initial 1998 basic education budget allocation was 98,104.73 million Baht. This was reduced approximately 7.8 per cent (7,624.16 million Baht) to 90,480.59 million Baht. While a substantial reduction, this must be viewed in the context of the overall pattern of budgets for education. The reduction results in a drop in the proportion of basic education budget to GDP, down to 1.78% from 2.0% in 1997. Even after the reduction, however the basic education budget remains a higher proportion of the national budget (11.3%) compared to the previous year (9.95%) (without reduction the basic education budget is 12.26% of the total budget). This patter indicates a continuing high commitment of Government funds to basic education. 30
Final Report, Volume II/3 Anthony. Cresswell: Educational Finance UNESCO-PROAP TA 2996-THA Education Management and Finance Study July 1999 Table 1 - Adjustments to education budget, 1998 (%) Project/Department Reduction 1. School lunch program 2.7 2. General administration 15.7 3. Pre-compulsory education 7.0 4. Primary education 7.7 5. Equal opportunity in education 9.6 6. Supervision and monitoring 0.9 7. Education evaluation 11.8 8. Education standards 27.0 9. School health 1.6 10. Education research and development 20.8 11. Personnel development 66.7 12. Teaching development 22.0 13. Pre-compulsory education (BMA) 0.9 14. Primary education (BMA) 1.8 15. Equal opportunity (BMA) 25.1 16. Primary education, Central office (DOCA) 6.0 17, Compulsory education (DOLA) 0.6 18. Primary administration (DOLA) 0.9 19. Equal opportunity in education (DOLA) 22.3 20.Teaching training and seminar (DOLA) 20.7 21. Child development (Dept. of Community Devel.) 10.6 Total reduction 7.8 Total Basic Education budget reduction 7.8 Source: The Bureau of the Budget b. As can be seen in Table 1 above, the reductions in some areas (such as Personnel Development and Standards) are very large, with virtually zero reductions in other areas. One way to interpret the pattern in the reductions is an attempt to protect core program areas and direct services to children at the expense of indirect or more discretionary areas (such as personnel development, research and development, or standards development). That is, outlays can be reduced without much immediate impact on basic services and operations by foregoing investment in staff development and maintenance, or in new initiatives. This is not an effective strategy for longer-term savings, since the costs of “catching up” with deferred maintenance and development of staff and programs can rise exponentially with longer delays. But as a strategy it does indicate both a commitment to protecting basic services and an optimistic expectation of a relatively short time for economic recovery. c. This budget reduction strategy was reflected in decisions taken at the provincial levels as well. Part of the responsibility for making budget reductions for the current fiscal year was delegated to the provincial education offices. The 31
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mission and operations. The term
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The information requirements for fi
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Table 1: Continued Dept. Flow of Re
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Table 1: Continued Dept. Flow of Re
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Description and assessment of compu
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Table 3: Existing computer systems
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Table 3: Continued Current existing
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Description of flows of financial i
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(teachers, facilities, etc) if data
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Table 4: Continued. Content of curr
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Table 5: Assessment of information
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An assessment of information system
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general administration, these syste
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Recommendation for IS Most involved
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6. The nation wide implementation.
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References Office of the permanent
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Office of private education commiss
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Interviews 10 September 1998, 9:00-
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Appendix 2 Projections of Costs of
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Projected Cost Increases for Expand
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Identification of Schools for Sampl
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8. Please place an X in a box below
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enrollment as a whole growing at an
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Figure 1: Thailand’s Development
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Table 5: Crude transition rates of
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and level of education, 1993 and 19
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2.31 Questionable quality of educat
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income inequality between agricultu
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4.1.4. The percentages calculated f
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Table 11: Public and Private sector
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4.3.8. As would be expected, unempl
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5.7 The dilemma is to balance the s
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Table 14: Unemployment and Underemp
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there any activities that would be
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References Chalongphob Sussangkarn
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Appendix 6 BMA Voucher Policy A. Lo
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Appendix 7 Finance Allocation Metho
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Appendix 8 Program Structure of the
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Not all possible flows are show, si
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Appendix 11 Results of Regression A
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