2002年-世界发展银行全球_Thailands_Hurdle_Approach_to_Budget_Reform_4页_343kb

Thailand's Hurdle Approach to Budget Reform Summary

Core Content

Thailand's budget reform strategy, known as the hurdle approach, aims to reduce central control over budgeting while enhancing the management capabilities of government agencies. This approach is designed to address the limitations of a highly centralized budget system that, while effective in preventing overspending, has led to inefficient and inflexible agency spending practices.

Main Views

• Centralized Control: Thailand's budget system is highly centralized, with the Bureau of the Budget controlling detailed budget lines and spending. This control has historically contributed to good fiscal management and discipline in spending areas like travel and vehicles.
• Cost of Centralization: However, this control has also led to inefficiencies and poor resource allocation, as agencies are not incentivized to improve their financial management or respond to client needs.
• Hurdle Approach as Reform Strategy: The hurdle approach seeks to retain fiscal discipline while transferring budget management responsibilities to line agencies. It introduces conditional devolution, where agencies must meet specific management standards before central control is reduced.
• Incentive for Improvement: By linking reduced central control to agency performance, the hurdle approach provides a clear incentive for agencies to improve their financial and performance management systems.

Key Information

The Seven Hurdles

The hurdle approach is based on seven management areas that line agencies must meet:

1. Budget planning
2. Output costing
3. Procurement management
4. Budget and funds control
5. Financial and performance reporting
6. Asset management
7. Internal audit

These areas are considered core competencies for effective agency management.

Implementation Process

• Pioneer Agencies: Six pioneer agencies were initially selected to implement the hurdle approach through memorandums of understanding with the Bureau of the Budget.
• Sector Experts: Each agency was assigned a sector expert from Australia or New Zealand to assist in identifying gaps and developing strategies for improvement.
• Standards Development: A group of experts funded by AusAID developed management system standards for the seven hurdles, which the Bureau of the Budget plans to consolidate into a budget reform manual.

Devolution and Block Grants

• Conditional Devolution: Central control is reduced gradually, on an agency-by-agency basis, once the hurdle standards are met.
• Block Grants: The initial steps toward block grants (funding based on outputs rather than line items) preceded improvements in financial management, creating a need for post-devolution upgrades.
• Output-Based Budgeting: The Bureau of the Budget is now moving toward an output-based budgeting system, with public service agreements replacing traditional line-item budgets.

Challenges and Lessons

• Slow Progress: The initial approach was too complex, and agencies faced confusion and limited technical support, slowing progress.
• Need for Political Pressure: Political support is crucial for overcoming resistance and maintaining momentum in reform.
• Integration of Consultants: International consultants should focus on basic management systems rather than more advanced reforms, especially in overly centralized systems.

Conclusion

Thailand's hurdle approach to budget reform represents a balanced strategy that retains fiscal control while promoting agency autonomy and improving resource use. It has provided a framework for gradual reform and increased accountability, but also highlights the importance of simplicity, political will, and effective support mechanisms in achieving successful budget reforms.