The Financing of Thai Education

Abstract

The financing of education is seen as both a cause and possible remedy for the problems of access and equity. This chapter draws upon empirical data to examine how the provision of education achieves these goals, what reforms have been proposed, and the problems that remain. The data show that even though the distribution of education subsidies is less inequitable than the distribution of income, the burden of educational expenditures is disproportionately heavier for the poor. Tackling this problem calls for three types of public finance reform: redirecting spending toward activities in which government participation is most critical, increasing reliance on user and other benefit-related charges to finance such spending, and decentralizing some public responsibilities to those in closer touch with local needs and conditions. Better targeting of subsidies is needed, and if the country’s resources are insufficient, then the introduction of fees for noncritical educational services should be undertaken. Better use of resources is also of critical importance to improve the system and achieve greater efficiency in financing. Also reform of the budgetary process should be accompanied by more innovative methods of service delivery to improve efficiency.