Thaksin and Budget Allocation: A Study in Political Compromise

Abstract

As a strong executive, Thaksin Shinawatra brought many changes to Thai politics and public administration, including to budget allocation. This article explains how the Thaksin government procured funds to implement many ‘populist' policies. Before Thaksin, budget allocation was dominated by the bureaucracy. Initially, Thaksin attempted to reform the system by removing the prerogative over budget allocation from the bureaucracy. This effort, however, failed due to resistance from the Bureau of the Budget. As a result, budget allocation came to rest upon compromise between government leaders and the Bureau of the Budget. Almost all funds for Thaksin's policies came from the Central Fund and revolving fund within the existing budgeting system. This article also shows that budget allocation under Thaksin did not damage Thailand's public finances.