Govt spending: More to provinces, less to Bangkok
World Bank report this week shows that too much govt spending goes to Bangkok & that more should go to the provinces.
World Bank report this week shows that too much govt spending goes to Bangkok & that more should go to the provinces.
Download the World Bank report mentioned in today's article Thailand Public Finance Management Report: Improving Service Delivery (report. , key findings, press release).
Photo shows a community in Chiang Mai meeting with the local government (Source: World Bank)
Click button to listen to More Spending in Provinces to download
Economics
World Bank urges budget reform
Suggests larger share for local governments
11/05/2012
Parista Yuthamanop
A World Bank study of public expenditure in Thailand has found an overconcentration in Bangkok and an inefficiency in budget distribution between the central government and local administrations nationwide.
As a result, the country has one of the world's widest discrepancies in public services between the capital and upcountry, said Annette Dixon, the Thailand country director.
She was speaking at the launch of the World Bank's "Thailand Public Finance Management Report: Improving Service Delivery."
The study puts forth recommendations for equalising the delivery of public services nationwide.
One is to increase funding for areas suffering from service deficiencies, equalising the discrepancies rather than continuing the existing practice that sees Bangkok garnering the lion's share of the budget.
The World Bank's analysis of local authorities and central government found overlapping functions at provincial and local levels, resulting in inefficient operations and redundancies.
The report suggested small local governments be consolidated for economy of scale and greater efficiency. Thailand should also formulate a national standard for delivering public services.
"One way the government could rebalance regional disparities is by improving the quality of and access to public services. The current distribution of spending is based on existing infrastructure services or on a historic basis. Over time, the funding formula should be adjusted to include more redistribution or equalising. Such spending should increase to at least 15-20% from 2% now," said Ms Dixon.
She said while the government began equalising funding this year, it could improve the situation further by raising the quality of regional public services to Bangkok standards.
The law requires the government to allocate 25% of its annual budget to local authorities, and efficiency should be a focus of this funding, she added.
Anwar Shah pointed to Denmark as an example, saying political changes in the 1990s brought about reforms in that country's budget allocation for central and local authorities.
Dr Shah is director of the Southwestern University of Finance and Economics' Center for Public Economics in Chengdu, China.
The Danish government eliminated 26 counties and replaced them with five regions for tax collection and development for the government, he said.
"There has been a wave of recent reforms in public finance in Europe dealing with local government consolidation. And resistance is as strong as one could expect. Aside from Denmark, the same has been done in Sweden, Norway, Turkey, Greece and the UK recently," said Dr Shah.
He said the fiscal crisis has also forced reform in France and Germany.
In addition to lower costs, consolidation can bring larger-scale investment in public services, Dr Shah added.
Shabih Mohib, the team leader for the report, suggested Thailand restructure its provincial governments to include a committee comprising representatives of local governments at various levels.
This committee would oversee and approve the performance of each provincial governor, who would still be appointed by the central government.
The committee could dismiss the governor by a three-fourths vote for misconduct.
(Source: Bangkok Post, World Bank urges budget reform, Suggests larger share for local governments, 11/05/2012, Parista Yuthamanop, link)
Provincial Government Spending Vocabulary
World Bank - "an international financial institution that provides loans to developing countries for capital programs. The World Bank's official goal is the reduction of poverty" (See Wikipedia)
discrepancy - a difference between things that should be the same
discrepancies in public services between the capital and upcountry
equalising - making equal, things that are different
equalising discrepancies - ending differences between things that should be the same
equalising discrepancies in public services between the capital and upcountry
budget - the amounts of money that an organisation has available to spend on different things during a period งบประมาณ (See Wikipedia)
reform - improvement; a change that is intended to correct a situation that is wrong or unfair การแก้ไข การปฏิรูป
budget reform
urge - ask someone strongly to do something
World Bank urges budget reform
share (noun) - the part of something that you get
share (verb) - to have or use something at the same time as other people ใช้ร่วมกัน
local - in or related to the area that you live, or to the particular area that you are talking about ท้องถิ่น
suggests larger share for local governments
expenditure - spending money
public expenditure - government spending
distribution - giving or delivering things to many people การจำหน่ายออกไป
budget distribution - how the budget is given to different uses and projects
inefficiency - now working well as it could, could do more work with given resources อย่างไม่มีประสิทธิภาพ a network, a transportation network
inefficiency in budget distribution
central government - the government for the whole country based in Bangkok
local administrations - local governments at the province and district (Tambon) level
nationwide - throughout a whole country ทั่วทั้งประเทศ
overconcentration - too much in one place
a World Bank study of public expenditure in Thailand has found an overconcentration in Bangkok and an inefficiency in budget distribution between the central government and local administrations nationwide.
capital - the city that is the main center for government in a country
upcountry - rural areas
discrepancy - a difference between things that should be the same
discrepancies in public services between the capital and upcountry
services - บริการต่างๆ things produced in service industries, not a physical good that can be bought, a waitress and a cook in a restaurant provide a service, technically: a sequence of activities that does not result in ownership of the outcome (See Wikipedia on services and the goods and services continuum)
public services - services provided to all people (the public) by the government
launch - to start something เปิดโครงการ, เริ่มต้น, เริ่มทำ
As a result, the country has one of the world's widest discrepancies in public services between the capital and upcountry, said Annette Dixon, the Thailand country director. She was speaking at the launch of the World Bank's "Thailand Public Finance Management Report: Improving Service Delivery."
put forth - present, suggest
puts forth recommendations
equalising the delivery of public services
The study puts forth recommendations for equalising the delivery of public services nationwide.
funding - money given for a particular purpose; money to a program so it can operate การให้เงินสนับสนุน
deficiencies - things that could be better
service deficiencies
suffering - physical or mental pain or problems ความทุกข์ทรมาน
suffering from service deficiencies
areas suffering from service deficiencies
practice - a way of doing something การปฏิบัติ
continuing the existing practice
garner - get
the lion's share - most of
Bangkok garnering the lion's share of the budget.
One is to increase funding for areas suffering from service deficiencies, equalising the discrepancies rather than continuing the existing practice that sees Bangkok garnering the lion's share of the budget.
authorities - government officials; the police or people in official organisations who have the legal power to make people obey laws or rules เจ้าหน้าที่ (ตำรวจ หรือผู้มีอำนาจ)
local authorities
central government
overlapping - (of areas of land) covering parts of each other ที่คาบเกี่ยวกัน
overlapping functions - two different people or departments that do some of the same things
efficiency - waste little time, energy and resources in doing a task (minimize time, energy and resources in performing a task) (See glossary) การทำงานอย่างมีประสิทธิภาพ คุ้มค่าเวลาและใช้พลังงานหรือต้นทุนในการผลิตน้อย เพื่อให้ได้ผลผลิตมาก
inefficient - not efficient (could produce more from the resources it has)
inefficient operations
redundancies - two people doing the same thing in an organization (thus wasting resources and staff)
The World Bank's analysis of local authorities and central government found overlapping functions at provincial and local levels, resulting in inefficient operations and redundancies.
scale - size (relative size)
economy of scale - "the cost advantages that an enterprise obtains due to expansion. There are factors that cause a producer’s average cost per unit to fall as the scale of output is increased" (See Wikipedia)
formulate - create a new plan or system
national standard - a standard for the whole country
formulate a national standard for delivering public services
The report suggested small local governments be consolidated for economy of scale and greater efficiency. Thailand should also formulate a national standard for delivering public services.
public services - services provided by the government
access - the ability to get something สิทธิหรือโอกาสในการใช้ the right or opportunity to have or use something ได้รับสิทธิ์หรือโอกาสในการใช้
access to public services - the ability to get services provided by the government
distribution - the way something is divided and given to many people or uses
distribution of spending
current - of the present time ปัจจุบัน
current distribution of spending
redistribution - sharing something out differently from before, especially in a fairer way การปันส่วนหรือจัดสรรอย่างเป็นธรรม taking from one group of people and giving to another group
infrastructure - the high-cost facilities that everyone in the economy shares (water, roads, electricity, trains) สาธารณูปโภค
on a historic basis - following what they did in the past, following the past practice
"One way the government could rebalance regional disparities is by improving the quality of and access to public services. The current distribution of spending is based on existing infrastructure services or on a historic basis. Over time, the funding formula should be adjusted to include more redistribution or equalising. Such spending should increase to at least 15-20% from 2% now," said Ms Dixon.
improve - to make better ทำให้ดีขึ้น
improving the quality of and access to public services
standards - an acceptable level of quality or achievement มาตรฐาน
Bangkok standards
raising standards
raising the quality of regional public services to Bangkok standards
She said while the government began equalising funding this year, it could improve the situation further by raising the quality of regional public services to Bangkok standards.
allocate (verb) - divide up something and giving it to people; to officially give out an amount of or share of something แบ่งส่วน จัดสรร, จัดแบ่ง
annual - happening once a year ประจำปี
annual budget
allocate 25% of its annual budget to local authorities
focus - the main thing it is concerned with ให้ความสำคัญ
efficiency should be a focus of this funding
The law requires the government to allocate 25% of its annual budget to local authorities, and efficiency should be a focus of this funding, she added.
reforms - improvements in the way that government works
allocation (noun) - an amount or share of something that is given to someone; in this case, the national budget การแบ่งส่วน the process of deciding to give an amount of share of something to some one การจัดสรรปันส่วน
budget allocation - part of the government budget given to a certain project or area in the country
tax collection - the process of the government collecting taxes from the people and companies
development - the gradual growth and formation of something
Anwar Shah pointed to Denmark as an example, saying political changes in the 1990s brought about reforms in that country's budget allocation for central and local authorities. Dr Shah is director of the Southwestern University of Finance and Economics' Center for Public Economics in Chengdu, China. The Danish government eliminated 26 counties and replaced them with five regions for tax collection and development for the government, he said.
wave - an activity or situation which is happening again or is being repeated after a pause
a wave of recent reforms
finance - to provide money for something จัดหาเงินทุนให้
public finance - providing money for government projects and services
consolidation - joining separate things into one unified whole
government consolidation
resistance - a refusal to accept something; a refusal to accept something or allow it to happen การต่อต้าน, การขัดขืน trying not to do what people are trying to force you to do
"There has been a wave of recent reforms in public finance in Europe dealing with local government consolidation. And resistance is as strong as one could expect. Aside from Denmark, the same has been done in Sweden, Norway, Turkey, Greece and the UK recently," said Dr Shah.
fiscal - related to government spending; connected with the government budget, i.e., public money เกี่ยวกับงบประมาณ
crisis - an urgent, difficult or dangerous situation วิกฤตการณ์ วิกฤต
fiscal crisis - when the government can no longer borrow the money it needs to pay for government spending (and cutbacks in government spending can cause an economic downturn)
He said the fiscal crisis has also forced reform in France and Germany.
investment - taking your money and putting it into projects to make a profit or earn interest (buying stock shares, bonds, real estate)
investment in public services
In addition to lower costs, consolidation can bring larger-scale investment in public services, Dr Shah added.
restructure - to organise an organization in a different way so that it will operate better ปรับโครงสร้างใหม่
restructure provincial governments
comprising - consisting of ประกอบด้วย
representatives - people elected by ann acting for local people in government
a committee comprising representatives of local governments at various levels.
Shabih Mohib, the team leader for the report, suggested Thailand restructure its provincial governments to include a committee comprising representatives of local governments at various levels.
oversee - manage, check to see if project is going ok จัดการ ดูแล to watch or organise a job or an activity to make certain that it is being done correctly คุมงาน,ควบคุม
performance - how well or badly something works (or whether an investment provides a reasonable return)
appointed - scheduled ตามกำหนดการ
This committee would oversee and approve the performance of each provincial governor, who would still be appointed by the central government.
dismiss - to force someone to leave their job ไล่ออกจากตำแหน่ง
dismiss the governor - force the governor to leave his job
misconduct - unacceptable or bad behaviour by someone in a position of authority or responsibility การประพฤติผิด
The committee could dismiss the governor by a three-fourths vote for misconduct.
