TDRI proposes Thai govt spending reform to reduce inequality

[webfact]

TDRI
TDRI proposes govt spending reform to reduce inequality
Erich Parpart
The Nation


From left: Worawan Chandoevwit, social security adviser, Somchai Jitsuchon, research director of inclusive development, and Ammar Siamwalla, distinguished scholar, join a press conference yesterday on the TDRI

BANGKOK: -- The Thailand Development Research Institute said government involvement was imperative for reducing social inequality, and it proposed structural reform of the public spending process for a fairer redistribution of government revenue.

As part of its reform proposal for the next government, the TDRI suggested establishment of an independent committee to oversee spending policy to increase transparency and make sure tax money is actually being used for the benefit of society, and especially for the people who truly need it.

"The government can play a huge part in lowering inequality in society, but the previous Thai government's involvement in this role has been marginal to almost none at all," said Somchai Jitsuchon, research director of inclusive development at TDRI.

This independent committee, which would not be part of the Finance Ministry, should consist of grass-roots and middle-income citizens, and they should have a major role in ensuring that the people have a voice in social and economic policies through methods such as primary voting.

Somchai suggested that a basic social-welfare bill should also be drafted to ensure that all people could receive welfare. The way to finance this would be to stop the use of all populist policies and the imposition of progressive taxes, such as increased heritage and capital-gains taxes.

He also suggested that at least half of the public budget should be invested in human capital such as education and welfare to increase social opportunities for the poor.

Direk Patmasiriwat of the Research Centre of the National Institute of Development Administration agreed that a board or committee should be set up to oversee government spending and suggested a platform similar to Australia's Parliamentary Budget Office.

"This country's budgeting system is ancient and in real need of reform," Direk said.

Worawan Chandoevwit, social security adviser at the TDRI, said the government should combat Thais' feeling of unfairness by decreasing the income of the rich and redistributing it to help the poor through welfare policy.

"Everyone should have equal access to education and social welfare in order for them to feel that they have been treated fairly by the government," Worawan said.

One solution would be an end to classification through the use of social welfare cards, while people should be able to pay to get better service under the universal healthcare coverage policy.

She also recommended that people start saving for pensions by themselves and not depend only on help from the government, to lessen the problem of an ageing society.

Viroj NaRanong, research director of health economics and agriculture at the TDRI, said Thailand had a problem of structural inequality between the poor and the rich and, more specifically, between people inside and outside the agriculture sector. Farmers account for 25-40 per cent of the workforce but their incomes account for only 3-7 per cent of gross domestic product.

Viroj said the government should discourage people from returning to the agriculture sector through populist policies such as the rice-pledging scheme because that will increase the cost of production and land rental because of the increase in demand.

He also said that if he government decided to abandoned the scheme, the farmers would be affected even more because the cost of the production would remain high and it would be hard to lower it.


-- The Nation 2014-02-18

[kikoman]

That is the real need of reform in the country, equality of government spending that has been unfairly given to the rich, by the Thai system, Which needs to undergo great change!

[kikoman]

It is hypocrisy that retirees from other countries come to Thailand to make their "Government retirement" dollars go further in the lower cost of living in Thailand, yet complain when the Thai government attempts to improve the living conditions of its working poor and farmers of Thailand simply because they feel it will affect their leisure lifestyle in Thailand!!

Cheers

[Thai at Heart]

I like the sound of it.

I just don't think that Suthep thought this was the type of ideas they would come up with

.

Cue protests against crazy left wing academics . lol

[chainarong]

Lets not see programmes like the rice scheme scam , this recommendation comes at a bad time, the PTP administration are in dire need of a make over , what a better opportunity than to get on board and buy more poor people votes. No more said .

[Tatsujin]

 

It is hypocrisy that retirees from other countries come to Thailand to make their "Government retirement" dollars go further in the lower cost of living in Thailand, yet complain when the Thai government attempts to improve the living conditions of its working poor and farmers of Thailand simply because they feel it will affect their leisure lifestyle in Thailand!!

Cheers

 

Don't know about yourself, but I live and work here and pay (by Thai standards) quite considerable taxes, so yes I will complain when I see part of what I have contributed being so blatantly wasted and stolen.

If you are quite happy giving your money away, you can keep quiet and don't complain about others who DO choose to say something.

[ggold]

It is hypocrisy that retirees from other countries come to Thailand to make their "Government retirement" dollars go further in the lower cost of living in Thailand, yet complain when the Thai government attempts to improve the living conditions of its working poor and farmers of Thailand simply because they feel it will affect their leisure lifestyle in Thailand!!

Cheers

So the rice farmers are feeling well looked after are they? Is that why so many are still waiting for their money, because the Thai government is attempting to improve their living conditions?

And there I was thinking all this government has done is cause the farmers to get into even more debt. Yes that must be their idea of help!

[ggold]

That is the real need of reform in the country, equality of government spending that has been unfairly given to the rich, by the Thai system, Which needs to undergo great change!

Indeed the PTP scamming politicians are feeling richer than the rice farmers

[rreddin]

That is the real need of reform in the country, equality of government spending that has been unfairly given to the rich, by the Thai system, Which needs to undergo great change!

The subtext of the reform proposals is a huge change in Thai society away from an agararian society, especially cultivation of rice, towards a larger base of properly educated employed workforce earning enough, after paying taxes, to support themselves and their family as well as saving for their retirment. These are all laudable, but long-term aims. So much in Thailand will have to change to make these proposals realistic. I doubt there is the will from any political party to do it.

[robblok]

 

It is hypocrisy that retirees from other countries come to Thailand to make their "Government retirement" dollars go further in the lower cost of living in Thailand, yet complain when the Thai government attempts to improve the living conditions of its working poor and farmers of Thailand simply because they feel it will affect their leisure lifestyle in Thailand!!

Cheers

 

Don't know about yourself, but I live and work here and pay (by Thai standards) quite considerable taxes, so yes I will complain when I see part of what I have contributed being so blatantly wasted and stolen.

If you are quite happy giving your money away, you can keep quiet and don't complain about others who DO choose to say something.

I agree... some people especially who work in offices pay loads of taxes its totally unfair that they have to pay for the poor. They are not the real rich. Let hem install some kind of property tax for land and houses. Also make sure businesses pay tax now they often don't

The taxpayer base is too small and too unfair, with more people paying it would be better. But that would also mean more people would complain when their taxes are wasted.. now its someone else his money.

Guys like kikoman who are at the receiving end of money never seem to think of those who pay it.

[tomacht8]

"As part of its reform proposal for the next government, the TDRI suggested establishment of an independent committee to oversee spending policy to increase transparency and make sure tax money is actually being used for the benefit of society, and especially for the people who truly need it."

Agree!

[robblok]

"As part of its reform proposal for the next government, the TDRI suggested establishment of an independent committee to oversee spending policy to increase transparency and make sure tax money is actually being used for the benefit of society, and especially for the people who truly need it."

Agree!

Agree too.. who would not want transparency.. except the PTP of course who wanted to do the 2 trillion transport project off the books without parliament checking it.

[bushwacker]

If the strategy is to take the rice from the farmers, and then renege on payments such that no money goes to the farmers, then for sure this will reduce the number of people wanting to go into the agriculture sector.

For once a well thought out strategy.

[rickirs]

"As part of its reform proposal for the next government, the TDRI suggested establishment of an independent committee to oversee spending policy to increase transparency and make sure tax money is actually being used for the benefit of society, and especially for the people who truly need it."

Agree!

Agree too.. who would not want transparency.. except the PTP of course who wanted to do the 2 trillion transport project off the books without parliament checking it.

I don't have a problem with a "watchdog" sort of independent committee to help keep budgetary transparency but the "make sure tax money is actually being used for the benefit of society, and especially for the people who truly need it" part sounds like the unelected committee would have legislative powers independent of the elected parliament and/or the power to veto legislative action of the parliament. As an example, the parliament passes a higher minimum wage but the committee decides that the people that would most benefit from it are "undeserving." Could the committee void that legislation? So there is a danger that if poorly constructed, the committee could become a dictatorial agency that could supplant a democratically elected parliament.

[robblok]

"As part of its reform proposal for the next government, the TDRI suggested establishment of an independent committee to oversee spending policy to increase transparency and make sure tax money is actually being used for the benefit of society, and especially for the people who truly need it."

Agree!

Agree too.. who would not want transparency.. except the PTP of course who wanted to do the 2 trillion transport project off the books without parliament checking it.

I don't have a problem with a "watchdog" sort of independent committee to help keep budgetary transparency but the "make sure tax money is actually being used for the benefit of society, and especially for the people who truly need it" part sounds like the unelected committee would have legislative powers independent of the elected parliament and/or the power to veto legislative action of the parliament. As an example, the parliament passes a higher minimum wage but the committee decides that the people that would most benefit from it are "undeserving." Could the committee void that legislation? So there is a danger that if poorly constructed, the committee could become a dictatorial agency that could supplant a democratically elected parliament.

On the other hand.. if it has no tooth at all.. like what the PTP has done with all things that keep them in check its not worth anything. It is a fine balance. I for one would love it if the oposition would take command of the anti corruption agencies and have full access to all government deals (opposition now means democrats but if they ever win (hard to) could be PTP too). Problem now is that almost all checking agencies have people in place friendly to the government. That is not the way it should be. The plan of an elected parliament is a good one but not in Thailand especially not if they want to allow family members. Then its just a rubber stamp. That is never what parliament was intended for. As i said many times... Thailand is not a real democracy.

[Jonmarleesco]

'... a basic social-welfare bill should also be drafted to ensure that all people could receive welfare.' Chalerm is on record as saying that Thais don't need a welfare/social security net. Certainly not when it's a publicly funded one.

'He [somchai] also suggested that at least half of the public budget should be invested in human capital such as education ...' Reactionary, as well.