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 2.3.1. Overall private expenditure on education The current evidence shows that the level of private (i.e., family and household) expenditures on education is quite high. The ONEC conducted two surveys in 1997. One surveyed approximately 5000 households with children in school to assess their expenditure patterns for school-related purposes. The other surveyed a similar number of households with students in higher education. While these are only estimates, they do indicate that the overall cost of education to the country as a whole is being shared on a substantial basis by the private sector. 2.3.1.1. Private Expenditure on Basic Education a. The results of the basic education survey (in Table 10 below) show that the estimated household outlay for education is near to and appears in several cases to exceed that from the Government budget, shown in Table 5 above. The household expenditure for public primary is approximately two-thirds of the Government cost per pupil, and the private outlay appears to exceed the Government cost for lower and upper secondary levels by a substantial amount. b. However, these comparisons of private expenditures with the budget amounts must be viewed with some caution, since the government figures do not present a complete picture of actual expenditures. The primary and pre-primary budget amount underestimates total government allocations, since it does not include all allocations from local government budgets (particularly BMA), since the full details of these allocations were not available. The secondary education figures are also only rough estimates, since the budget summaries combine allocations to lower and upper secondary programs. The estimation of secondary expenditure is further complicated by the operation of lower secondary programs by ONPEC, the allocation for which appears as a primary education expenditure. For 1997, ONPEC lower secondary enrollments were reported as 536,291, approximately 15 per cent of the total. In addition, non-formal enrollment and expenditures are excluded due to the part-time enrollment of some students in non-formal programs. In addition, the private amounts are self-reported by the households, and could not be verified by independent accounting records. Therefore the private amounts could contain errors. Nonetheless, the basic conclusion indicated by these estimates does not depend on a high level of precision. The rough order of magnitude of these figures remains evidence of substantial private outlays. 62
Final Report, Volume II/3 Anthony. Cresswell: Educational Finance UNESCO-PROAP TA 2996-THA Education Management and Finance Study July 1999 Table 10 - Estimates of household expenditure on education (ONEC survey, 1997) School Type Control Total Priv. Expenditure Tuition And Fees Indirect Est. Budget Expenditure Kindergarten Public 3,854 377 9.8% 3,489 90.5% Private 11,670 4,910 42.1% 6,760 57.9% Primary Public 6,349 526 8.3% 5,834 91.9% 9,213* Private 15,704 4,500 28.7% 11,195 71.3% Low. Secondary Public 10,838 1,176 10.8% 9,657 89.1% 12,487** Private 17,368 4,323 24.9% 13,045 75.1% Upper Secondary Public 17,129 2,453 14.3% 14,684 85.7% Private 24,977 6,915 27.7% 18,336 73.4% Voc. Educ. Public 15,452 3,035 19.6% 12,412 80.3% 14,320*** Private 28,385 13,320 46.9% 15,276 53.8% Total Public 8,804 1,008 11.4% 7,803 88.6% Private 18,908 6,723 35.6% 12,348 65.3% Notes: * Combined Pre-Primary and Primary, 1998 ** Combined Lower and Upper General Secondary, 1998 *** Includes OPEC and DOVE enrollments c. There is also significant variation in the level of private expenditure across levels and types of schools, as shown in Figure 13 below. As would be expected, the family expenditures for private schools are substantially higher than the public schools. As Figure 13 shows, most of the difference in expenditure is accounted for by higher tuition in the private schools. However, the indirect expenses (meals, transportation, supplies, etc.) are markedly higher in the private schools, especially at the primary level where they are almost double that for the public schools. Some of these higher indirect costs may reflect higher charges by the private schools for some materials, meals, or other services. The differences also include higher transportation costs that reflect parents’ choices of distant schools, and possibly parent preferences for higher priced clothing, supplies etc. d. The large proportion of these indirect expenses and their discretionary nature has policy implications. It appears at least plausible that increases in direct charges (tuition and fees) could be paid by some families without substantial increases in the total cost of schooling. This would be possible if they were willing to substitute lower cost choices for discretionary expenses in order to offset and increase in direct charges. The equity implications of these possible policy and spending shifts are discussed in Section 2.4, below. 63
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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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