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               Study on Innovation in Local Government’s Revenue:



                    College of Local Government Development, King Prajadhipok’s Institute, and the Asia
               Foundation have recognized the importance of the financial situations among the local
               governments as discussed above. Therefore, the joint study on “Policy Proposal of Innovation

               in the Local Government’s Revenue” has occurred with the main objective in offering a new
               approach to the development of the local government’s revenue in order to promote the
               practice of the policy in the future.

               P Scope of the Study


                    Due to the current financial structure of the local government, this study aims to
               synthesize 4 resources of the local government’s revenues as the follows:

                    1. User Charges
                    2. Local Public Enterprises and Social Enterprises
                    3. Local Economic Development

                    4. Loans and Bonds

                    The development of the local government’s revenue in these four categories can be
               preceded by a local government itself. This is also consistent with the principles of Fiscal

               Decentralization to Local Government. When the collection of the local revenue in these four
               categories increases, the local government reduces its dependence on funding from the
               central government. The local government can become more fiscally independent. If the local

               government’s revenue is in a relatively large proportion, it will reflect better fiscal stability of the
               local government.

                    The development of these four revenue categories has never been the focus among

               local governments because it has not been clearly introduced through any research or
               academic proposal. This study, then, focuses on providing the clear understanding in these
               four categories of local revenues and the introduction of innovations for the development of the

               revenue for the better practice in the future.

               P Method

                    Five aspects of the method:


                    1) Literature Review

                      The researchers have studied the concept and principles of 4 revenue sources: User
               Charges, Local Public Enterprises and Social Enterprises, Local Economic Development, and

               Loans and Bonds. Moreover, the local and international studies of these four revenue sources
               as well as the relevant laws and regulations to the revenue have been included in this study.
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