Thai Local Government Organizations’ Management of Fiscal Risk

Abstract

This study attempts to identify fiscal risk factors confronting Thai local government organizations and to describe these organizations’ management of such risk in accord with their local administrative objectives. The study’s findings were as follows. The first type of risk concerned the local government organizations’ capacity of revenue collection. The cause was the local government organizations’ high degree of fiscal overdependence on the central government. The second involved fiscal, especially expenditure management. Overall, most of the local government organizations operated without efficient fiscal administration. The other types of risk were the lack of fiscal personnel, the inefficient fiscal data processing, the problem of fiscal auditing, the absence of the personnel’s engagement in local fiscal administration, and tax evasion. To mitigate the impact of the above types of risk, the following elements of good fiscal practice are recommended: (1) an efficient fiscal administration process; (2) enhancement of fiscal personnel’s competency; (3) development of information technology systems in support of local fiscal administration; and (4) regular reviews of fiscal processes.