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 c. The differences between public and private sectors are much more pronounced in higher education. Expenditures per head in the closed (highly selective) universities is more than six times that in the private universities. In contrast with basic education, the level of capital expenditure in the private higher education sector is considerably lower than in the public. Only the Open Universities has lower expenditure levels for either recurrent or capital categories. Given the large enrollment, largely part-time nature of the Open Universities, this expenditure level is not surprising. What these data show clearly is a three-level higher education system. The closed universities operate with three to six times the resources levels of the rest of the sector, making them clearly separate in financial terms. The differences among the remaining institution types are less pronounced, but the remaining public institutions are still well above the private, making them the middle level in terms of resource endowment. The private university system is the low finance level, roughly on a par with private upper secondary expenditure levels. d. Higher education systems in most countries show wide differences in expenditures per head, so these differences in themselves are not necessarily a policy problem. However the relationship between the sources of the finances and the beneficiaries raises a question of equity. The data on the income levels of the families of students in these different institutions indicates that higher education in general serves families with considerably higher income than the population as a whole (see Table 7 above). There is a fairly consistent pattern of higher levels of education serving higher income populations, with students from the highest income segment of the population attending private higher education and upper secondary levels. This suggests that the higher education system is less open to lower income students, in part no doubt because they received lower quality basic education and do not qualify for admission, and in part because they cannot afford to attend. To the extent that this is true, the higher education system is less of a mechanism to promote access to education and educational opportunity, and more a mechanism to reinforce the existing patterns of wealth and status in the society. This latter outcome would be quite inconsistent with overall policy goals and principles of equity. 2.2.3. Local Revenue and Expenditure 2.2.3.1.. Local revenue sources a. One of the stated goals of current reform initiatives and responses to the financial crisis is to stimulate greater support for educational from local resources. It is therefore necessary to examine the degree to which local resources now support educational programs and the local capacity to expand that support. In this context, the term “local resources” can include both public and private sources. The contributions of private sources are reviewed in the following section. Attention is given here to the local government contribution to educational financing. b. Support for public (government) schools currently comes from multiple sources. The largest proportion is from the Government budget. Overall, ONEC 60
Final Report, Volume II/3 Anthony. Cresswell: Educational Finance UNESCO-PROAP TA 2996-THA Education Management and Finance Study July 1999 estimates that 83 per cent of the total budget for schools is from the central Government, with approximately one percent from local sources, approximately 15 percent from private funds, and the remainder from foreign or international donor funds. 13 The proportions for municipal schools (BMA and the other municipalities) are different, since these schools receive substantial funding from municipal sources. For these schools, approximately 24 per cent of educational revenues are from local taxation and an additional one per cent from miscellaneous sources, leaving 75 per cent support from the central Government. Bangkok (BMA) is by far the largest municipality, operating 430 schools under its jurisdiction, with an estimated 1998 education budget of 1.8 billion Baht (BMA Education Department figures). These municipalities also receive subsidies directly from the Central government, with the BMA anticipating approximately 7.7 billion Baht in subsidies for 1998. c. The revenues from local tax sources are generated from several sources. Municipalities may levy an ad valorem property tax on buildings, vehicle license fees, fees for certain economic activities (such as animal slaughtering, sign boards, liquor sales, etc.), and a surcharge (1 per cent) of the VAT tax collected by the central Government. These can be substantial sources of revenue for the municipalities, and do support education. However the municipal schools enroll only about six per cent of the total for Thai schools. So the role of local revenue for the overall education system remains quite small. The revenue-raising mechanisms and capacities of the municipalities do provide, however, a potentially useful model for how other local revenues could be generated for the support or education in some more developed areas. 2.3. Private educational expenditure a. Government expenditure represents only part of the total investment in education. This is recognized in current policy and reform proposals, which advocate measures to increase the proportion of educational expenditure coming from private sources. Therefore this analysis recognizes the importance of this part of the educational finance picture and has examined the available evidence on current private expenditures. The examination includes estimates of overall expenditures from households and other non-Government sources and the implications of these patterns for equity in educational opportunity and potential for revenue increases. b. These estimates are based on examining the flow of private resources from two perspectives: that of the households and families that supply the funds, and that of the schools that receive the funds. The estimates of household outlays are based on two sources of data: a survey of approximately 5000 households conducted by the ONEC in 1997, and the results of the 1996 National Social Survey, employing a sample of approximately 25,000 households. The estimates of school revenues from private sources are based on a sample survey of over 600 schools conducted as part of this project. A description of the school survey is found in the Appendix 3. 13 Presentation by Dr. Nongram Setapanich, Sept. 12, 1998. 61
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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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