Educational Finance in Thailand - UNESCO Bangkok

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LIST OF ABBREVIATIONS ADB BOB BMA BOT CSC DGE DNFE EMIS FY HRD KTB LEA MOE MOF MOI MOLSW MOPH MUA NEC NESDB NGO NTC ONEC ONESQA ONPEC OPEC ORIC OTCSC PC RI RIT SLB SLS SLSC SSP SSPL TA TDC TERO TRF TVE UNESCO VAT Asian Development Bank Bureau of the Budget Bangkok Metropolitan Administration Bank of Thailand Civil Service Commission Department of General Education Department of Non-formal Education Education Management Information System Fiscal Year Human Resource Development Krung Thai Bank Local Education Authority Ministry of Education Ministry of Finance Ministry of Interior Ministry of Labor and Social Welfare Ministry of Public Health Ministry of University Affairs National Education Commission National Economic and Social Development Board Non-governmental Organization National Teacher Council Office of the National Education Commission Office for National Educational Standards and Quality Assessment Office of the National Primary Education Commission Office of the Private Education Commission Office of the Rajabhat Institute Council Office of the Teacher Civil Service Commission Position Classification Rajabhat Institute Rajamangala Institute of Technology of the MOE Student Loans Bureau Student Loans Scheme Student Loans Scheme Committee Social Sector Program Social Sector Program Loan Technical Assistance Teacher Development Center Teacher Education Reform Office Thailand Research Fund Technical and Vocational Education United Nations Educational, Scientific and Cultural Organization Value Added Tax viii
Final Report, Volume II/3 Anthony. Cresswell: Educational Finance UNESCO-PROAP TA 2996-THA Education Management and Finance Study July 1999 A. Executive Summary 1. Purposes of the review The Educational Finance Review presented here was conducted as part of the Asian Development Bank Social Sector Program Loan. This program was initiated to assist the Royal Thai Government in responding to the financial crisis affecting Thailand. The purpose of the Finance Review is to aid in that process by providing an analysis of the current educational finance situation in Thailand and making recommendations concerning improvements and reforms. The review addresses these objectives in detail and includes policy recommendations concerning the issues identified. 2. Financial crisis The full range of effects of the economic crisis on the students and schools is difficult to document, but apparently serious. The best information about the economic condition of schools and students concerns the private school system (collected by the Office of the Private School Commission, OPEC). The enrollments in the private schools appear to be dropping, which would be expected due to their higher costs. The number of students owing tuition to the schools has also risen appreciable in the recent crisis period. The average amounts owed by upper secondary school students is quite large, in spite of their small numbers, due to the higher tuition and fees involved at that level of the education system. Although comparable figures are not available for the public schools, there is every reason to believe that the nature of the financial impact is at least as severe in that sector. However, the enrollments in public schools have not fallen overall during the crisis period. 3. Implications of the financial crisis for educational finance 3.1. Budget adjustments a. As a result of the crisis, there was a reduction in the original education budget allocation for the 1998 fiscal year. The initial 1998 basic education budget allocation was 98,104.73 million Baht. This was reduced approximately 7.8 % (7,624.16 million Baht) to 90,480.59 million Baht. While a substantial reduction, this must be viewed in the context of the overall pattern of budgets for education. The reduction results in a drop in the proportion of basic education budget to GDP, down to 1.78% from 2.0% in 1997. Even after the reduction, however the basic education budget remains a higher proportion of the national budget (11.3%) compared to the previous year (9.95%) (without reduction the basic education budget is 12.26% of the total budget). This pattern indicates a continuing high commitment of Government funds to basic education. b. These reductions were not evenly distributed across budget categories. The reductions in some areas (such as Personnel Development and Standards) are very large, with virtually zero reductions in other areas. This uneven distribution of reductions was described as a way to protect core program areas and direct services to children at the expense of indirect or more discretionary areas. This is 1
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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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Educational Finance in Thailand - UNESCO Bangkok

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