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นวัตกรรมการพัฒนารายได้ 3
ขององค์กรปกครองส่วนท้องถิ่น

28 (9) and (10) and the Council and Tambon Administrative Organization
Act, 2537 B.E, Section 83 stipulates that the Tambon Administrative

Organization is be able to make loans under the regulations of the Ministry of
Interior. In fact, the Tambon Administrative Organization cannot do so because
there is no regulation of the Ministry of Interior that supports the process in
local governments.

= Bonds of Bangkok Metropolitan Administration are limited by law. The law of
Bangkok Metropolitan Administration and regulations in bonds of local agencies
namely the Bangkok Metropolitan Administration Act 2528 B.E, specified in

Section 117 (7) that the city may have earned income from the sale of bonds
once approved by the cabinet. The issuance is a difficult process in submitting

to the Cabinet for consideration which must be considered by the several
agencies such as the National Economic and Social Development Council,
Ministry of Finance, and the Budget Bureau. Therefore, it will take an extended
amount of time. Another laws of the Stock Exchange of Thailand directly related

to the issuance of bonds requires that local governments will have to follow the
rules and conduct the same practice as other private agencies. It means local

governments must apply the same criteria as private sectors. The current
financial statements must pass the inspection of the Office of the General
Auditor first. This procedure is quite time-consuming.

= The process of implementation is complex. Steps to issuing local bonds are
complicated than making loans and the cost of operating is high such as fee of
legal counsels and registrar. The costs are much higher than that of the loans
from financial institutions.

2. Potential of the Organizations and Staffs

= The lack of knowledge and understanding among local staffs. The issuance of
bonds is completely new to local staffs and requires knowledge and expertise in
planning operations. In the case of Bangkok Metropolitan Administration, there
is a need to hire a consultant to oversee and study the process. The staff was

inexperienced in such matters particularly in the ability to analyze the planning
and implementation of local bonds.

3. Political Will

= The loan to finance projects affects the voting. Some local governments make
loans to finance projects in the favor of future election and ignore the ability to

repay resulting in the long term financial problems.