The Reporter Asia – Disbursement of investment budgets by government agencies is a crucial engine for driving the country’s economy, especially during economic downturns. Expediting budget disbursement to inject funds into the system is a mechanism that stimulates both consumption and private investment.
However, data from the Office of the Auditor General of Thailand’s (OAG) “Summary Report on Procurement or Procurement of Supplies for the Fiscal Year 2022” reveals significant problems and obstacles in the public procurement process that could affect budget disbursement and overall economic momentum.
Problems with Investment Budget Disbursement
The OAG report states that in the 2022 fiscal year, the OAG received a total budget allocation of 422.69 million baht for equipment and construction. However, only 57.48 million baht, or 13.60%, was actually disbursed. Projects underway account for over 343.98 million baht, or 81.38%, of the total budget.
Causes of the Problem
The OAG report points to key reasons for the delay in budget disbursement:
-
Construction Delays: Construction projects for office buildings and residential complexes in several provinces faced delays due to technical issues, such as inaccurate land boundaries, and natural disasters like storms and floods.
-
Procurement Issues: Several procurement projects encountered problems, such as bid cancellations due to incorrect documentation and the inability to procure goods according to specified criteria.
Economic Impact
The OAG’s delayed budget disbursement is just one reflection of the broader issues within the public procurement system,impacting the economy in several ways:
-
Lost Economic Opportunities: Budgets not utilized for planned investments translate to missed opportunities for job creation, income generation, and infrastructure development.
-
Investor Confidence: Delays and uncertainties in government projects can negatively affect the confidence of both domestic and foreign investors.
-
Government Operational Efficiency: Inefficient procurement may result in government agencies not receiving goods and services necessary for their operations in a timely manner.
Recommendations
To address these issues and enhance the efficiency of public budget disbursement, the OAG proposes the following solutions:
-
Planning and Preparation: Thorough project planning, including detailed surveys and preliminary data checks,should be conducted to prevent potential problems later on.
-
Improving Procurement Procedures: Regulations and procurement procedures should be reviewed and revised to be more agile and transparent, incorporating information technology to increase efficiency.
-
Personnel Development: Training and development should be provided to relevant personnel to ensure a proper understanding of procurement practices and ethical conduct.
Conclusion
The OAG’s delayed budget disbursement in 2022 serves as a reminder of the importance of reforming the public procurement system. Addressing this issue will not only improve budget disbursement efficiency but also positively impact the overall economic development of the country.
#ThailandEconomy #Budget #Procurement #OAG
