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 2. Review of educational finance in Thailand 2.1. National budget: structure, process, and allocations 2.1.1. Overview of the education budget A government budget can be viewed a number of ways; among them are as a way of organizing and presenting financial information about government activities, as a process of decision making about the use of government resources, or as a plan to direct and control how those resources are used. A comprehensive understanding of the budget and how it works in the finance system requires looking at the budget from at least these three points of view, as will be done here. The first section describes the different ways the government budget organizes and uses information for different purposes. The second section describes the budget decision making process. The final section examines the outcomes of the budget process in terms of allocations and expenditures. Each section focuses attention on the aspects of the budget and finance system in relation to the main purposes of this review, and are not intended to be exhaustive discussions of the overall topic. 2.1.2. Education in the National Budget a. When the national budget is viewed in terms of major sectors of activity, education is the largest by a substantial margin (22% in FY 1997), exceeding the social service sector by almost 60 billion Baht. The figures for the major sectors of the budget are shown in Table 3 below. Table 3 - National budget by sector, FY 1997 Program Classification of Expenditures (in million Baht) Fiscal Year FY 1996 FY 1997 Changes over the FY 1996 Sector Amount % Amount % Amount % Agriculture 76,660 9.1% 83,964 8.5% 7,304 0.9% Industry and Mining 2,531 0.3% 3,006 0.3% 475 0.1% Transp. And Communication 86,091 10.2% 95,940 9.7% 9,849 1.2% Commerce and Tourism 6,737 0.8% 6,936 0.7% 198 Science, Tech., Energy, Envir. 14,769 1.8% 19,515 2.0% 4,745 0.6% Education 169,561 20.1% 216,279 22.0% 46,718 5.5% Public Health 63,452 7.5% 75,023 7.6% 11,571 1.4% Social Services 120,351 14.3% 158,696 16.1% 38,346 4.5% Maintenance of National Security 107,897 12.8% 119,429 12.1% 11,532 1.4% Maint. Internal Peace and Order 40,407 4.8% 44,278 4.5% 3,871 0.5% General Services 106,752 12.7% 114,139 11.6% 7,387 0.9% Debt Services 47,992 5.7% 46,796.40 4.8% (1,196) -0.1% Total 843,200 100% 984,000 100% 140,800 16.7% Source: Bureau of the Budget, Thailand's Budget in Brief, Fiscal Year 1997 40
Final Report, Volume II/3 Anthony. Cresswell: Educational Finance UNESCO-PROAP TA 2996-THA Education Management and Finance Study July 1999 Trends in the size of the education share have been continuously upward. The rate of growth in the education sector has averaged over 17% per year over the past decade, a rate exceeded by the economic development and the public health sectors at about 23%. These growth rates are compared with the other sectors of the budget in Figure 7 below. Figure 7 - Components of the National Budget by Sector Components of the National Budget by Sector, 1987-1997 1,000,000 900,000 800,000 Million Baht 700,000 600,000 500,000 400,000 300,000 200,000 100,000 0 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 Gen. Administration Other Debt Service Int. Peace & Order Defense Public Health Education Economic Dev. These trend lines show that the overall rate of increase of Government spending has been increasing in all sectors between 1987 and 1997. The reductions in the 1998 budget show that the economic crisis has brought a halt to the rapid growth rates in Government expenditure shown in Figure 7. But the period of large investment in education shown here does provide a base of development that can be sustained through a period of cut backs through increases in efficiency and better financial management. b. The budget sectors shown in Figure 7 do not correspond fully to the sectors shown in Table 3. The organization of information and categories in the national budget has been revised over the past decade. 2.1.3. Structure of the education budget a. The information in a budget must serve a variety of purposes, and is therefore organized and presented in a variety of ways. This is especially true of the education component of the national budget, since education is a complex government function, provided by many different branches of the government. To simplify, education budget information can be thought of as being organized to answer three separate questions: 41
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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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