Decentralisation stalled
The Finance Ministry will propose that the new government change the law regarding fiscal decentralisation, ministry spokesman Somchai Sujjapongse says.
The ministry cannot transfer 35 per cent of state revenue by fiscal 2006 to local government due to delays in transferring part of duties of the Education Ministry and Public Health Ministry to local bodies. The ministry could only subsidise local governments with Bt126 billion or 24.1 per cent of the total budget for the current fiscal year, he said. The 35 per cent allocation should be postponed to 2010, he said. The ministry, central bank, Budget Bureau and National Economic and Social Development Board had agreed in principle to earmark Bt1.48 trillion for fiscal 2007. Local government will be given 26 per cent of this amount.
Wichit Chaitrong The Nation
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