Discussions on the 2570 local administrative budget saw Veera advising a clear explanation of stalled subsidy issues and highlighting management problems within the Department of Local Administration. He revealed accumulated off-budget funds of about 200 billion baht that need to be managed appropriately for current conditions and tagged them as [local government budget, subsidy issues, financial management].
At 15:52 on 10 August 2026, during the 24th session of the House of Representatives' special committee meeting to consider the draft budget act for fiscal year 2570, the discussion took place. Tags: [budget committee, legislative session, fiscal year 2570]. Article 33 concerns local administrative organizations. Tags: [local administration law, budget article]. (Local Administrative Organizations - LAOs). Tags: [abbreviation, local government]. Mr. Veera Theeraphatranon. Tags: [person, local government official]. As a committee member, Mr. Veera stated that the total budget for local administrative organizations allocated by the Budget Bureau and the government amounts to 219.727 billion baht, covering schools, infrastructure, and public utilities. However, a key problem is the limitations he is investigating with the Ministry of Interior, especially the Department of Local Administration (DLA). For example, municipalities may generate revenue from land and building taxes, but this varies. Meanwhile, expenses include personnel, maintenance of infrastructure and public utilities, and new projects to improve convenience and quality of life for residents. Tags: [budget allocation, local revenue, expenses, Department of Local Administration].
Mr. Veera continued that there are general subsidies and specific subsidies, governed by DLA regulations requiring co-payment from the LAOs for projects. He referred to details in Budget Act 2570, specifically section 23. According to Budget Bureau document no.7 on off-budget funds usage plans for fiscal year 2570, at the end of 2568, the Ministry of Interior had accumulated off-budget funds totaling 189.634 billion baht, almost entirely under the DLA’s management. Tags: [subsidies, co-payment, off-budget funds, Ministry of Interior].
"In simple terms, almost all of the Ministry of Interior’s accumulated off-budget funds are managed by the DLA. The estimated figure for fiscal year 2570 is 218.395 billion baht, which is close to the government's allocated budget of 219.727 billion baht. Each LAO knows how much off-budget money it has with the DLA. I request detailed data on each LAO’s off-budget accumulated funds, broken down by Provincial Administrative Organizations (PAOs), city municipalities, towns, subdistrict municipalities, and subdistrict administrative organizations (SAOs). This will clarify their varying needs, burdens, and revenues. Using a uniform central subsidy standard may cause management difficulties." Tags: [off-budget funds, budget comparison, local government types, financial data]. . Tags: []
LAOs face a heavy burden, such as maintaining infrastructure transferred from central agencies, especially roads and street lighting, mostly from the Department of Rural Roads. The maintenance costs fall on LAOs, reducing their ability to expand public facilities. There is a need to reorganize management. Other small revenues like land and building taxes or various fees differ by location and are hard to analyze individually; a broader overview is necessary. Tags: [infrastructure maintenance, cost burden, revenue sources, local government challenges].
"What I want to emphasize is that continuing current off-budget management practices by the DLA will remain problematic. I understand some funds are reserved for officials and staff, but this limits LAOs’ financial independence as their revenues do not cover expenses. Although the government allocates VAT sharing at about 0.1 percent plus other funds, and aims for roughly a 32 percent distribution, it cannot fully meet all needs. Thus, this management approach will cause problems." Tags: [financial management issues, government allocations, VAT sharing, budget distribution].
Mr. Veera further called for LAOs to clarify the obstacles in general and specific subsidies and to identify how their internal financial management regulations need reform. He said that while this issue might have been overlooked previously, with off-budget accumulated funds reaching 200 billion baht annually, management must align with current realities. He plans to study this further and propose solutions but urges all stakeholders to collaborate on better management now. Tags: [financial transparency, subsidy obstacles, management reform, collaboration].
He cited examples from abroad where municipalities issue bonds, a practice not yet established in Thailand. If politically strong LAOs need to invest and can guarantee repayment, they could raise funds by issuing municipal bonds, such as Bangkok or large city bonds. Large municipalities or provinces with sufficient revenue and major infrastructure needs might not need to follow current restrictive regulations. Although legal work remains, this is a proposed direction. Without such measures, rural municipalities, towns, and subdistricts will struggle to progress. Tags: [municipal bonds, local government financing, investment, legal reform, infrastructure development].