(Budget Allocation to Local Government: Increase or Decrease of Local Financial Autonomy)

Abstract

The article aims at 3 significant objectives. First, it is to
explain and present the importance of local financial
autonomy. Second, it is to present and explain the significance
of budget allocation from government to local government
organizations under Determining Plans and Process of
Decentralization to Local Government Organization Act 2542
B.E. (1999) and the adjusted Act leads to the increase or
decrease of Local Financial Autonomy. The local financial
autonomy could be viewed by the fact that local government
can manage its own financial administration without intervention
or interference from the government. From the study ( fiscal
years 2009-2014), it revealed that fiscal budget from
government was a major source of local government
organization’ s income and it was 39.35%-41.29 % of total
budget of local government organization, while 8.54% -9.35 %
came from local government organization by itself (local
government organization’ s taxation). This proves that local
government organization’s income depended on the government
rather than itself. Local government organization must await
budget allocation under the restrictions and rules fixed by
government. So it cannot deny that this fact decrease rather
than increase local financial autonomy.