The Politics of Area-Based Budgeting During the Fiscal Year 2017–2023

Abstract

This research aims 1) to study the mechanisms and political processes in the allocation of area-based budgets during the fiscal years 2018–2023, 2) to analyze the roles of actors in the area-based budget allocation process during the same period, and 3) to propose guidelines for improving the process of area-based budget allocation in the fiscal years 2018–2023 . It is a Descriptive Research using Qualitative Research methods, collecting real-world data to analyze the politics of budget allocation, in which budgeting is not merely a technical process but a political phenomenon linked to fairness and the reduction of social inequality.

The findings reveal that Thailand’s spatial budget allocation system remains highly centralized. Central agencies such as the Bureau of the Budget, the Ministry of Finance, and the National Economic and Social Development Council are the main authorities determining the direction and core policies. Although there are opportunities for localities and citizens to propose plans or projects, final decision-making power still resides with central authorities and high-ranking officials. This results in the majority of the budget being concentrated in major cities or provinces with significant economic and political influence, while rural areas or provinces lacking strong political representation receive noticeably less funding. Regarding the roles of key actors, the research finds ongoing coordination among the central government, regional authorities, local governments, and the public. The central government continues to set the main policy direction, while regional authorities and provincial governors are responsible for conveying and coordinating these policies at the local level. Local administrative organizations are tasked with planning and implementing projects, despite facing limitations in authority and budget. Meanwhile, citizens and local networks play a role in voicing concerns and monitoring transparency. Nevertheless, the primary decision-making power remains with the central authorities, sometimes resulting in budget allocations that do not fully address the actual needs of each area. The research recommends urgently decentralizing authority and budget to localities in a genuine manner. Local administrative organizations should be empowered with greater autonomy in planning and managing budgets. At the same time, public participation should be promoted at every stage from identifying issues and planning to monitoring and evaluation so that budget expenditures truly respond to the specific needs of each area. Such improvements will help create a fairer, more transparent budget system and sustainably reduce disparities between major cities and rural areas.