2012年-世界发展银行全球_Central-Local_Government_Relations_in_Thailand___Improving_Service_Delivery_84页_3mb

Summary of Thailand Public Financial Management Report 2012

Core Content

This report provides an in-depth analysis of central-local government relations in Thailand, focusing on the institutional framework, challenges, and policy recommendations for improving public financial management and service delivery at the local level. It was prepared in collaboration with the Royal Thai Government and highlights the progress and remaining issues in Thailand's decentralization reforms.

Main Views

• Decentralization as a National Priority: Thailand has embraced decentralization as a key policy goal since the 1997 Constitution, aiming to enhance democratic participation, improve service delivery, and reduce regional disparities.
• Structure of Local Government: Local administrative organizations (LAOs) are the primary units of local governance, with locally elected councils and executives, but still subject to significant central oversight.
• Fiscal Reforms: The central government has transferred about 25% of net revenues to LAOs, and efforts have been made to improve their financial autonomy. However, financial management remains fragmented and inefficient.
• Service Delivery Challenges: Despite devolution of responsibilities, service delivery functions are still overlapping, leading to inefficiencies and lack of accountability.
• Need for Integration and Accountability: The report emphasizes the importance of integrating institutions, functions, and fiscal systems to improve coordination and performance monitoring.

Key Information

Central-Local Relations

• Thailand's government is structured into central, regional, and local administrations.
• Decentralization reforms have aimed to strengthen local governance by devolving responsibilities and increasing financial autonomy.
• LAOs, including Provincial Administrative Organizations (PAOs) and Tambon/Sub-district Administrative Organizations (TAOs), are the main local administrative units.
• The Royal Thai Government (RTG), through the National Decentralization Committee (NDC), oversees the implementation of decentralization reforms.
• Central control remains strong, with many LAOs still operating under the de facto control of central government officials, undermining local self-governance.

Fiscal Relations

• The Decentralization Act 1999 aimed to increase local access to central government revenues from 11% to 35%.
• The target was later revised to 25% due to slow progress in decentralizing education and health services.
• Intergovernmental transfers include both general purpose and specific purpose subsidies, which are distributed to LAOs.
• Own-source revenues and tax sharing mechanisms are in place, but local tax autonomy is limited.
• Local budgeting and public financial management are critical for effective service delivery, yet many LAOs lack the capacity and tools to manage finances efficiently.

Local Accountability and Performance Monitoring

• e-LAAS (Electronic Local Authority Accounting System) has been implemented since 2005 to improve financial management transparency, but it is only used by about 1,200 LAOs out of 7,853.
• Local Quality Management (LQM) is another tool for performance monitoring, but it lacks the capacity to capture timely and comprehensive data on service delivery.
• Citizen scorecards and audit findings are recommended to enhance accountability and transparency.
• Data collection and analysis are essential for improving accountability and ensuring that local governments are responsive to citizens' needs.

Policy Recommendations

• Reform the Fiscal Architecture: Move towards a decentralized unitary model with a centrally appointed governor who would serve as the provincial chief executive, supported by a Provincial Council with directly elected LAO heads.
• Consolidate LAOs: Consider the consolidation of smaller LAOs into larger, more viable units to reduce fragmentation and improve efficiency.
• Enhance Financial and Performance Monitoring: Ensure that e-LAAS covers at least 85% of LAOs, and that LQM and audit frameworks are in place to provide timely and comprehensive information on service delivery and financial performance.
• Improve Local Autonomy: Strengthen local governance by increasing the financial and administrative autonomy of LAOs and reducing the de facto control of central officials.
• Strengthen Institutional Integration: Streamline and integrate supervisory controls and functions across local public financial management, personnel management, and administration to improve coordination and effectiveness.

Conclusion

The report underscores the need for a holistic and integrated approach to reform central-local fiscal relations in Thailand. It emphasizes the importance of accountability, transparency, and efficiency in local governance and calls for a comprehensive legislative and institutional review to ensure that decentralization reforms align with the unitary structure of the government and lead to responsive and accountable service delivery. The recommendations aim to strengthen local autonomy, improve performance monitoring, and enhance the overall effectiveness of public financial management at the local level.