Economist blames government for inefficient budget management

By WICHIT CHAITRONG
THE NATION

 

Sakon Waranyuwattana

 

BANGKOK: -- THE GOVERNMENT’S move to increase the central fund demonstrates that state agencies are functioning poorly, said Sakon Waranyuwattana, dean of Thammasat University’s faculty of economics.

 

The amendment of the 2017 budget bill was announced in the Royal Gazette in the past few days. It authorises fund transfers from numerous state agencies to the central fund worth a combined total of Bt11.9 billion. 

 

The transfer was approved by the National Legislative Assembly (NLA) last month. The government defended the move, saying that state agencies had failed to spend their budgets as planned and circumstances had changed. 

 

However, Sakon blamed the government management of the annual budget, which resulted in fragmented allocations and inefficiency. The government mainly allocates budgets through government departments, resulting in budget centralisation and a lack of coordination among officials who work for different ministries and departments. 

 

He suggested the government should decentralise budget allocation by focusing on geographic spending and allow local governments to have a greater role in budget management. 

 

Sakon added that he did not agree with increasing the central budget because he said it would be like giving a blank cheque to the Cabinet. Lawmakers cannot scrutinise spending because no details were provided about projects when the central fund was proposed by the government, he said.

 

The central fund had risen alarmingly from about Bt10 billion to Bt100 billion in recently years, he said. 

 

When the government last year proposed the 2017 budget bill to the NLA, it set total expenditures at Bt2.73 trillion, including a sizeable central fund of Bt346 billion. Earlier this year the government also proposed a mid-year budget bill worth Bt190 billion, aimed to stimulate the economy. 

 

The 2017 fiscal year will end on September 31, and government agencies are trying to speed up their budget disbursements.

 

Source: http://www.nationmultimedia.com/news/national/30315634

 

-- © Copyright The Nation 2017-05-19

Patronage, face, corruption,! That's why!

militaries feed at the public teat; always have; why would anyone expect them to be fiscally responsible ?

There seem a great deal of effort for this government to centralize and control. For countries of similar sizes, Thailand is now the most centralized in the world. Power and funds are mostly centralized. Besides functioning poorly, centralization will likely to increase corruption as checks and balances are undermined by the huge task of monitoring the distribution of funds.  

"The 2017 fiscal year will end on September 31..."

 

I see government agencies have been given an extra day to spend their money prior to the end of the fiscal year.

Is there a list of which state agencies this would be applicable to, it all seems a bit vague.

Vagueness is what Thailand is all about.!

Would love to see their bookings and money transfers from 31st September.

Right on Khun Sakon Waranyuwattana, if life get's boring- risk it.

And still 70% plus of budget is spend in Bangkok and surrounding provinces.

Edited May 19, 20179 yr by SOUTHERNSTAR

Are not all Monarchies 'centralized'?  That is simply the order of such governments.  All funds proceed to the top, and from there doled out to the underlings.

30 minutes ago, SOUTHERNSTAR said:

And still 70% plus of budget is spend in Bangkok and surrounding provinces.

What else is new this is no secret. Should rename the country Bangkok and get it over with. 

Give the man a hardy round of applause a promotion and a raise but methinks his retirement will be in his not so distant future. 

Since when has a "serving" military man been a successful economist or even an accountant? 

8 hours ago, Eric Loh said:

There seem a great deal of effort for this government to centralize and control. For countries of similar sizes, Thailand is now the most centralized in the world. Power and funds are mostly centralized. Besides functioning poorly, centralization will likely to increase corruption as checks and balances are undermined by the huge task of monitoring the distribution of funds.  

That is exactly what is going on, centralisation.

That said, I have never heard that economy is indeed an exact science.

For what this Dean declares, I dare to say there are many of his colleagues who will gladly and wholeheartedly declare the opposite.

And, indeed, the possibilities for corruption and useless spending by decentralised government are much bigger.

Getting back unused money is a good thing, more if the next year the budget remains the same or is even lower.

So everyone can see where this country slowly is drifting.......

 

Sakon Waranyuwattana is putting the finger in one thing...but there are soo many more things happening here in Thailand to run into a state of total corruption and the economic will break down same as it did for all the comunist countries while the government was ruling every thing without a glue of an idea of economic facts....

But yes this is the way to full up the pockets of those who are in charge..from top to bottom!!!!!!!!!!!!!

Poor Thailand: poor people who have not a chance to get a spoonful of this money but have to starf!

 

 

One hopes this doesn't get into faceB.................................

"circumstances had changed. " wonder what that really means.

regards worgeordie

7 hours ago, lvr181 said:

Since when has a "serving" military man been a successful economist or even an accountant? 

And the truth has set him free?

'Economist blames government for inefficient budget management'

 

Well, the government is, for the most part, made up of military appointees - and they're not necessarily good at that. 

8 hours ago, elgordo38 said:

Give the man a hardy round of applause a promotion and a raise but methinks his retirement will be in his not so distant future. 

 

8 hours ago, elgordo38 said:

What else is new this is no secret. Should rename the country Bangkok and get it over with. 

I don't understand why people double post within seconds. Is it to boost the number of posts? Is it too difficult to get your points over in one post? After all if you want to add something to your first post you can edit it.

1 hour ago, TheLobster said:

 

I don't understand why people double post within seconds. Is it to boost the number of posts? Is it too difficult to get your points over in one post? After all if you want to add something to your first post you can edit it.

Wrong on both points kind sir. Its part of the aging process its just a matter of a fertile mind pushing the submit reply button and then then an addition pops up in yea old grey matter. As you age more you will understand. My apologies for getting you upset but patience with the elderly is a virtue. 

Gee a coup and junta controlling the money and not giving out details and not being accountable to anybody.  Who'd a thought it?

On 5/19/2017 at 8:14 AM, webfact said:

state agencies had failed to spend their budgets as planned

That's not accurate.

The agencies have almost five months to complete their budget obligations. An obligation reserves a budget from being considered an unexpended amount. An example of an obligation is a signed procurement or services contract. By moving the current unobligated funds now to the "central fund" actually prevents agencies from their fiscal plans.

 

NLA by its approval to redirect government agencies' funds to the central fund has essentially usurped the Executive Branch's budgeted fiscal plans. Why would the NLA approve such an action and why would the Executive Branch headed by PM Prayut not object? From the perspective that the NLA is a rubber-stamp legislative assembly to the needs of the NCPO, it would seem the NCPO has changed its priorities on fiscal spending from its spending priorities as of September 2016. Maybe it's more urgent now for more military purchases?

That's not accurate.

The agencies have almost five months to complete their budget obligations. An obligation reserves a budget from being considered an unexpended amount. An example of an obligation is a signed procurement or services contract. By moving the current unobligated funds now to the "central fund" actually prevents agencies from their fiscal plans.

 

NLA by its approval to redirect government agencies' funds to the central fund has essentially usurped the Executive Branch's budgeted fiscal plans. Why would the NLA approve such an action and why would the Executive Branch headed by PM Prayut not object? From the perspective that the NLA is a rubber-stamp legislative assembly to the needs of the NCPO, it would seem the NCPO has changed its priorities on fiscal spending from its spending priorities as of September 2016. Maybe it's more urgent now for more military purchases?

We want the cash, our normal sources have dried up, so we're having it back. Well observed.

 

Some things are best left lying in the damp ooze under flat stones, or so it is hoped...

 

11 hours ago, elgordo38 said:

And the truth has set him free?

"Free" to do what he likes?   Maybe he is a fan of Frank Sinatra? 

 

Sure he has stopped the armed street rioting and trying to move the country forward but only in the context of the military being always the "protective" big brother and will still oversee everything that happens in his country.

 

There seems to be little movement (apart from lip service) on basic reforms.Those in power will not give it up willingly!

incompetent ex army generals are not economists.  That are self seeking egotistical dreamers at the very best.

42 minutes ago, lvr181 said:

"Free" to do what he likes?   Maybe he is a fan of Frank Sinatra? 

 

Sure he has stopped the armed street rioting and trying to move the country forward but only in the context of the military being always the "protective" big brother and will still oversee everything that happens in his country.

 

There seems to be little movement (apart from lip service) on basic reforms.Those in power will not give it up willingly!

I think you struck a cord. The big brother approach is all to familiar world wide. Every time I try to picture a big brother I see a big burly bare chested guy with a whip and a smile of course.