PUBLIC EXPENDITURE ANALYSIS OF THE BANGKOK METROPOLITAN ADMINISTRATION AND ITS DISTRICT OFFICES Pichit Ratchatapibhunphob A Dissertation Submitted in Partial Fulfillment of the Requirements for the Degree of Doctor of Public Administration School of Public Administration National Institute of Development Administration 2012 ABSTRACT Title of Dissertation Public Expenditure Analysis of the Bangkok Metropolitan Administration and its District Offices Author Pichit Ratchatapibhunphob Degree Doctor of Public Administration Year 2012 The Organization of Local Administration has been authorized in the duty and responsibility to respond the need of the population in the locals. Additionally, the role of the central government is in charge of controlling to be subject to the administrative efficiency to keep all of the advantages. Importantly, the main mechanism of authority has been in charge of identifying the direction in developing the locals, that is, the process of the policy formulation and the budget administration. The findings of this research aims at the qualitative analysis, is that, it is possible whether the Governor of Bangkok Metropolitan reflects on identifying the direction of the policy and managing of the budget of Bangkok Public Expenditure in different tasks and considering what type of his making-decision actually would be assigned in the administrative situation. In addition, based on supplementing with the empirical analysis points out that the factors affect the change of the amount of public expenditure of each district department, those are mixed with the method of the public administration and the notion of theory or the rule which can be described to identify changing the amount of public expenditure. The qualitative analysis, that is, the role of the Governor of Bangkok Metropolitan reflect on identifying the direction of the policy and managing of the budget of Bangkok Public Expenditure in different tasks and considering what type of his making-decision actually would be assigned in the administrative situation. Those iv are measured by analyzing budget in brief in each fiscal year. The significance of providing the budget is that it is congruent with the public policy submitted to the population among the campaigns for the election of each Governor of Bangkok Metropolitan. Certainly the analyzes that reflect to the policy formulation which compatible with the policy implementation, is that to prove the attention of remedying the public problem authorized by each Governor Bangkok Metropolitan through the procedure of the Budget Administration of each fiscal year. Those have been presented the analyzes that operated the budget of Bangkok Metropolitan in brief from 1985-2010, the total was 26 years of the actual administrative practice covered with six Governor of Bangkok Metropolitan who had administered for eight years. The qualitative result found that the role of Governor Bangkok Metropolitan have influenced on identifying the direction of the public policy and manage the budget of the public expenditure. In the relationship quoted above, it is subject to the change in both direct and indirect effects on inevitably living of the population in Bangkok Metropolitan. It has clearly been that the direction of the development was employed largely in Bangkok Metropolitan, points that it depends on the notion of the policy formulation and the budget administration. Moreover, this notion that the overall of the patterns in the movement of Bangkok Public Expenditure of the year 1985-2010 had appeared among eminent three patterns of important movements, that is, reported to be; (a) Sideway, (b) Downtrend, and (c) Uptrend. The above patterns mentioned, that is based on the empirical analysis points that the pattern of the public expenditure of different tasks were changed by reducing significance of the infrastructure through which a matter of increasing the investment in the quality of life of the population. Hence, the overall mentioned above, those have been emphasizing that the policy formulation and the budget administration could be the type of making-decision upon the administrators of the local administration, believed that it has authorized under the notion of “Populism”. In the part of analysis of the notion “Positive Theory” calculated by “Secondary Data”, separated at any given point of each district department in Bangkok Metropolitan, the data mentioned above, were gained in 1999-2009. However, there was restricted procedure due to lack of gathering data and processing data systematically in the government sector, therefore that is to investigate the study was only 11 years. v This analysis aims at the achievement of the objectives of the research according to the discovery of the significance of the statistical analysis, which can find that the factors affect the change of the amount of public expenditure in each district in Bangkok Metropolitan. Those can be classified into: In case one: It indicates that the economic factor, the socio factor, the decision-making factor, and the political factor giving indirect influence on Bangkok District Public Expenditure through the governmental factor. The study found in this part shows that the variables have affected to the Bureaucrat, it points that the positive variables have influenced on the Bureaucrats, showing the highest to the lowest values respectively, those are such as Bangkok District Collection Capability, Population, and One-Year Lagged Bangkok District Public Expenditure. However, in considering one negative variable which has effected on the Bureaucrats is the “Population Density”. In case two: It indicates that the economic factor, the socio factor, the decision-making factor, the political factor, and the governmental factor are correlated to Bangkok District Public Expenditure with different causes and directions have shown as follows: The study found in this part shows that the variables have affected to Bangkok District Public Expenditure, it could state that the positive variables have influenced on Bangkok District Public Expenditure, showing the highest to the lowest values respectively, those are such as the Bureaucrats, Bangkok District Collection Capability, and One-Year Lagged Bangkok District Public Expenditure. However, in considering one negative variable which has effected on the Bangkok District Public Expenditure is the “Population Density”. Considering in the direct and the indirect effect, the total effect of Bangkok District Public Expenditure, it found the most influential variables such as the Bureaucrats, Bangkok District Collection Capability, Population, and One-Year Lagged Bangkok District Public Expenditure, and Population Density, respectively. The characteristics of the relationship among the independent variables have shown the effect of changing the amount of budget of public expenditure, that is called, “Casual Model”. vi At last, this research aims at investigating the important objectives of the development of the locals through presenting the process of analysis of Bangkok Public Expenditure. That can be pointed that the development and the response affect the need of the population in the locals in order to depend on themselves. ACKNOWLEDGEMENTS This thesis could have been accomplished with the assistance from several kind advisors, firstly, Associate Prof. Dr. Montree Socatiyanurak, who accepted me to his student. His gratefulness mastered as: Teacher is a “Giver”. Secondly, I wish to express my deep gratitude to Prof. Dr. Direk Patmasiriwat, who is an expertise in Public Finance. Special thanks to Associate Prof. Gallayanee Parkatt and Assistant Prof. Achakorn Wongpreedee, who kindly enhance me with valuable advice. Grateful appreciation is extended to Associate Prof. Dr. Ponlapat Buracom, who inspired me to conduct any knowledge at the beginning of this thesis. Importantly note of thanks is extended to Dr.Nuttakrit Powintara for his constant advice. Lastly, the most important note of thanks is extended to the gratefulness of all professors who kindly gave me a train that enabled me to improve a most of complete thesis. Also, I would like to thank all staff of Public Administration for their cooperation and care for giving the comfort to me, I feel grateful to the staff and the librarians who I visited and asked for help to lend me the books from the library. Finally, the most important note to pay respect to my dearest father, mother who must be patient in any troubles of all their lives to order to give me a chance for the best study here. Moreover, my father is an ideal of diligent and hard work and my mother who is an ideal of her strong-minded character, is that enables to fight with all of any barrier. So both ideals are like to a case of my attempt to do this research. Of course, my nice wife who constantly advises and encourages me, and she gives me with inspiration all the time. A last one, is my little nicest daughter who born for fulfillment of my life. Pichit Ratchatapibhunphob October 2012 TABLE OF CONTENTS Page ABSTRACT iii ACKNOWLEDGEMENTS vii TABLE OF CONTENTS viii LIST OF TABLES x LIST OF FIGURES xiv CHAPTER 1 INTRODUCTION 1 1.1 Statement and Significance of the Study 1 1.2 Objectives of the Study 4 1.3 Scope of the Study 5 1.4 Expected Benefits of the Study 5 CHAPTER 2 CONCEPT THEORY AND LITERATURE REVIEW 7 2.1 Concepts, Theories, Principles and Rules of Formulating 7 a Conceptual Framework 2.2 System Theory 8 2.3 Concepts, Theories, Principles and Rules on the Size 21 of the