Specific Grant Allocation Policy for Local Authorities and Fiscal Disparity: A Case Study of Chonburi Province

Abstract

This research aimed to study the government’s specific grant allocation policy to local government organizations (LGOs) of Thailand during 2001-2018 and fiscal disparity of LGOs in Chonburi province during 2010-2017. It employed the mixed method research. The quantitative research was a secondary data analysis of grants for 7,848 and 97 local authorities in the country and Chonburi province, respectively. The qualitative research consisted of in-depth interviews with 9 persons involved in allocation and local administrators at all levels by content analysis and interpretation. It was found that such policy fluctuated according to political changes. Most governments maintained a relatively constant amount of by-authority general grants. The size of specific grants varied inversely proportional to purposive general grants, and missions were alternated between them, reflecting the level of political role in governing the policy. The phenomenon affected the income of Chonburi localities. Wealthy municipalities earned more grant than the poor, however the situation among SAOs was the opposite. The disparity of all grants among municipalities were higher than those of SAOs. In particular, the disparity in specific grants over several years were very high because many localities were not supported. It should therefore increase the total income and proportion of by-authority general grants, reduce specific grants and use as needed. Projects which LGOs can get comprehensively should be developed and additional budgets should be provided to the government projects.