The Comptroller General’s Department (CGD) has made revelations regarding the previous fiscal year’s budget underspending, attributing it to the prolonged delay in budget approval. According to CGD director-general Patricia Mongkhonvanit, the late passing of the state budget created quite a ripple effect.
The fiscal year 2024, which concluded on September 30, saw significant usage of the fixed fund, totaling 2.8 trillion baht, primarily designated for crucial expenses such as civil service salaries. Remarkably, this segment was over-disbursed by 101%, exceeding expectations.
On the other hand, the investment portion of the budget painted a different picture. The government managed to disburse only 440 billion baht, which accounts for just 65.1% of the available funds. This figure lagged 10 percentage points behind the 75% target, revealing a clear underperformance.
The unallocated portion of the investment fund hasn’t gone to waste, though. Ms. Patricia noted that the leftover funds have been redirected to bolster the budget for the ongoing fiscal year’s first and second quarters, stretching up until March.
The previous national budget amassed a staggering 3.4 trillion baht. Unfortunately, the approval delays, rooted in the protracted government formation following the 2023 elections, meant the budget bill didn’t see the light of day until April—seven months into the fiscal year. This lag sorely hampered various agencies’ abilities to launch and execute investment projects within the intended timeline.
Breaking down the fiscal targets, Ms. Patricia explained that last year’s minimum spending threshold for the fixed fund was set at 98% of available resources, while the investment portion was pegged at 75%. In contrast, this year’s target for the fixed fund spending remains steady at 98%, aiming to avoid another scenario of underutilization or over-disbursement.
It’s clear that while the government made sure civil service and fixed expenses were robustly funded, the investment fund’s lagging performance underscores the challenges posed by administrative delays, and there’s a lot riding on ensuring the current fiscal year’s budgets hit their marks without such hitches. The hope is that agencies will ride out this fiscal year’s budget more smoothly, avoiding the pitfalls of the previous year.
So the CGD managed to spend all their fixed funds but dropped the ball on investments? Typical government inefficiency!
I think it’s more about the budget delays than inefficiency. It’s hard to launch projects without the funds being approved.
Budget approval delays are a political problem, but the real issue is prioritization. Fixed funds go first because they are politically safer.
Still, it’s frustrating. They should have contingency plans for these delays. Investing in infrastructure is critical!
Investments always get cut first. It’s unfortunate, but in times of uncertainty, governments play it safe.
But playing it safe doesn’t create jobs or grow the economy. We need those investments.
Agreed. By pulling back on investments, they’re slowing down long-term economic growth.
It’s all about political gains. Civil service salaries win votes, investment projects are just bonuses.
Except investment projects also create opportunities and infrastructure for future economic growth. We can’t just overlook that.
I’m curious how other countries manage budget delays. There has to be a better system!
Some countries have rolling budgets or advanced disbursement schemes. It helps avoid these kinds of bottlenecks.
It’s about effective planning and political will. Our system is too rigid and reactive.
Why don’t they teach about how these budget issues affect us regular people in school? Seems like something we should all know.
It’s partly because budget issues are complex, and curriculums are already packed. But I agree, financial literacy is crucial.
It’s just frustrating. We should be better informed so we can hold our leaders accountable.
Patricia Mongkhonvanit seems to be fairly transparent about the budget shortfall. At least they’re acknowledging the issues.
Acknowledging is one thing, but what’s the action plan? Announcing shortfalls is only step one.
Exactly. Talking about the problem isn’t the same as solving it.
Will this reallocation of funds to the new fiscal year actually help, or is it just a band-aid solution?
It might help in the short term, but without addressing the root cause of delays, it will happen again.
They need structural changes to avoid these delays. Reallocation is just kicking the can down the road.
This problem is systemic. The budget process needs a complete overhaul, but good luck getting politicians to agree on that!
So true. Everyone knows the system is broken, but no one wants to take the tough steps to fix it.
It’s just easier for them to maintain the status quo. More accountability is needed.
Maybe it’s time to consider a mixed approach—fixed disbursements for non-flexible expenses and rolling budgets for investments.
That sounds logical. It would allow more flexibility and potentially avoid these kinds of shortfalls.
Wait, they overspent on fixed funds but underspent on investment? How does that even happen?
Strictly allocated funds. Each segment has its own rules and timelines. It’s a bureaucratic nightmare.
Seems like common sense is missing here. Can’t they adjust on the fly?
This shows the inherent flaws in our political system. Delays in government formation should not cripple our fiscal health.
Reforming the political system is easier said than done. Too many vested interests.
That doesn’t mean we shouldn’t try. Pressure from citizens can bring about change.
Investment misallocation affects everyone. We need those projects for economic growth!
Can’t believe they didn’t hit the 75% mark for investments. What a mess!
How are these delays still happening? We’ve had budget issues for years.
They always find a way to mess things up. We need to demand more transparency.
Budgets are inherently political. Fixing these issues requires systemic change.