Educational Finance in Thailand - UNESCO Bangkok
Educational Finance in Thailand - UNESCO Bangkok
Educational Finance in Thailand - UNESCO Bangkok
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
F<strong>in</strong>al Report, Volume II/3 Anthony. Cresswell: <strong>Educational</strong> <strong>F<strong>in</strong>ance</strong> <strong>UNESCO</strong>-PROAP TA 2996-THA<br />
Education Management and <strong>F<strong>in</strong>ance</strong> Study July 1999<br />
and provide a basis for higher quality budget decisions. It may also alleviate some<br />
of the tension between BOB officials and their m<strong>in</strong>istry counterparts. However,<br />
improv<strong>in</strong>g opportunities for participation at the top levels of decision mak<strong>in</strong>g is<br />
not enough. The allocation process with<strong>in</strong> m<strong>in</strong>istries or lower levels was often<br />
described as excessively rigid, and driven by allocation formulas and standards<br />
imposed from above. Improved decision mak<strong>in</strong>g at the upper levels will not<br />
necessarily produce better budgets if the allocations at lower levels are the result<br />
of <strong>in</strong>adequate processes.<br />
2.1.4.4. Excessive budget rigidity<br />
a. There is also strong evidence that the budget imposes too many restrictions on<br />
management at lower levels. This was referred to most frequently as the “l<strong>in</strong>e<br />
item” problem. That is, the budget decision mak<strong>in</strong>g process at the M<strong>in</strong>istry level<br />
and below determ<strong>in</strong>es not only the amount of funds to each unit and program area,<br />
but also the allocation of those funds across the objects of expenditure (salary,<br />
utilities, etc.). The f<strong>in</strong>al operat<strong>in</strong>g budget document is built up from the proposals<br />
aggregated from the school level to the M<strong>in</strong>istry, with the necessary adjustments.<br />
Once the budget is passed <strong>in</strong>to law, it controls the use of funds back down to the<br />
school level and the <strong>in</strong>dividual l<strong>in</strong>e items. School pr<strong>in</strong>cipals, prov<strong>in</strong>cial officials,<br />
up to the M<strong>in</strong>istry level have to obta<strong>in</strong> BOB approval for shifts among budget<br />
categories. Such rigidity is bound to lead to <strong>in</strong>efficient use of resources and is a<br />
dis<strong>in</strong>centive for effective management.<br />
b. The rigidity of the budget also tends to underm<strong>in</strong>e the accuracy of budget data<br />
as a tool for management or assessment. When adm<strong>in</strong>istrators have flexibility <strong>in</strong><br />
adjust<strong>in</strong>g budgets, they do so, and the result<strong>in</strong>g records are a reasonably accurate<br />
reflection of actual operations. When budgets cannot be adjusted, creative<br />
adm<strong>in</strong>istrators may change operations, but their budget descriptions rema<strong>in</strong> fixed.<br />
This is sometimes referred to as “category creep.” One example reported was a<br />
shift <strong>in</strong> how temporary wages were used. The orig<strong>in</strong>al allocation was for teachers<br />
to perform a particular function <strong>in</strong> a fixed location. When the function was<br />
changed, the teachers were transferred to transient roles, but their salary allocation<br />
could not easily be changed, and so rema<strong>in</strong>ed at the fixed location. The budget no<br />
longer reflects the actual expenditure <strong>in</strong> that or other locations. Such distorted<br />
budget data, if present on a large scale, can lead to serious errors <strong>in</strong> management<br />
or policy decisions.<br />
2.1.4.5. Incremental decision mak<strong>in</strong>g<br />
Because the budget decision mak<strong>in</strong>g <strong>in</strong>volves such large amounts of detail, the<br />
opportunity for comprehensive analysis and review is limited. Participants <strong>in</strong> the<br />
budget process reported that the result is a largely <strong>in</strong>cremental approach. That is,<br />
most of the basic budget components are <strong>in</strong>creased <strong>in</strong> annual <strong>in</strong>crements without<br />
detailed analysis. Attention is devoted more to special projects or new <strong>in</strong>itiatives.<br />
One negative consequence is that newer schools are said to be disadvantaged,<br />
hav<strong>in</strong>g gone through fewer budget cycles and acquired fewer <strong>in</strong>crements. Also<br />
overall allocations are not reviewed <strong>in</strong> light of chang<strong>in</strong>g conditions or priorities<br />
47