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 argument, though with somewhat less empirical support, applies to the returns for investment in vocational versus academic secondary education. e. The widely varying rates of expenditure across levels have equity implications as well. If these variations in support could be argued to help reduce some other inequity in educational opportunity, a case could be made for their continuation or perhaps even expansion. However just the opposite seems to be the case. The primary beneficiaries of the high levels of subsidy to higher education appear to be the higher income students and households. University students in general come disproportionately from the higher socio-economic levels of society. This generalization does appear to apply to Thailand. Substantially higher incomes characterize the students in baccalaureate study compared to the other levels of education according to the data reported in Table 7 below. Table 7 - Education expenditure and family income by level Expenditure Per head by Level and Type of Institutions Avg. Parent Current Exp. Capital Exp. Public Academic Income Tuition per head per head Primary 82,500 4,962 1,957 Secondary Lower 121,932 358 5,933 3,173 Upper 141,948 849 8,919 3,643 Vocational 127,992 1,304 7,934 7,788 Diploma Rajamongkol Institute 125,496 1,650 11,082 8,925 Teacher College 128,004 1,884 12,943 14,870 Baccalauriate Rajamongkol Institute 147,480 3,183 13,567 9,745 Teachers College (2 yr) 140,604 1,964 5,319 8,571 Teachers College (4 yr) 133,904 1,639 10,592 7,657 Closed University 140,244 1,641 31,443 30,888 Open University 89,352 1,130 3,943 2,586 Private Academic Primary 215,532 1,389 3,892 4,821 Lower Secondary 252,792 2,238 4,613 4,751 Upper Secondary 288,164 2,943 5,993 5,817 Private University 193,860 8,829 5,648 4,222 Source: ONEC, School Finance Study, 1992 f. The primary school income figures in Table 7 are considered here to be the most representative values for the society, since primary school attendance is over 90 per cent. The average incomes for the Baccalaureate level (excluding the Open University) are over 70% higher than for primary and 15% higher than lower secondary, while comparable to upper secondary. The spread is even greater for private universities and the closed (selective) public universities. The comparability between family incomes in upper secondary and higher education is to be expected, since attendance in upper secondary is selective and has relatively low participation rates (approximately 47%). Overall, the indication is clear that the high levels of support for higher education cannot be justified on equity grounds, except perhaps for those students attending the Open University. 56
Final Report, Volume II/3 Anthony. Cresswell: Educational Finance UNESCO-PROAP TA 2996-THA Education Management and Finance Study July 1999 2.2.2.2. Expenditure Across Budget Categories a. Efficient use of resources requires a balance of allocation among the various uses and categories for the objects of expenditure. Therefore this review includes attention to the patterns in resource use over the recent past. The first part of this review examines the patterns of expenditure over the main categories of expense which are standard in the Government budget: salaries, temporary wages, remuneration (for non-salary expenses), utilities, subsidies (transfers to other levels or organizations), capital expenses, and other. The proportion of these amounts by level are shown in Figure 12 below. Figure 12 - Per cent of budget by education level and category of expenditure Percent of Budget by Education Level and Categories of Expenditure, 1998 Per Cent of Budget 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Pre-prim/Prim Secondary Academic Vocational Other Higher Educ. University Non-Degree Other Not def. by Level Not Classified Misc. TOTAL Salary Temp. Wages Remun. Utilities Capital Subsidies Other b. To show the actual scale of expenditure, the actual amounts and percentages allocated to these expenses for the 1998 budget are shown in Table 8 below. c. The comparison of amounts in Table 8 shows substantial variation in the mix of resources used in the different levels and components of the educational system. Since education is a labor-intensive service, it is expected that the proportion of expenditure on salary and wages will be large. What is not expected is that the variation among the levels and components of the system would be as large as those seen here. Across almost all of primary and secondary components the proportion of temporary wages is similar. So the sizes of the differences are accounted for by permanent salaries. Since salary rates for the primary and perprimary grades are lower in general than those for secondary, the larger proportion of expense to salary for the lower levels must be accounted for by higher proportion of staff. The overall student-teacher ratios for the public schools bears this out, with an average of 23.3 students per teacher for the primary level, 57
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- Volume II/3 - Educational Finance
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Table of Contents A. Executive Summ
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Table of Tables Table 1 Adjustments
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Figure 18 Figure 19 Figure 20 Figur
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Final Report, Volume II/3 Anthony.
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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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