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นวัตกรรมการพัฒนารายได้
ขององค์กรปกครองส่วนท้องถิ่น

government agencies both central and local because of the habit of public
administration that relies primarily on regulatory authority with no competition

with others.

= Lack of Skills in Human Resource Management of Local Public Enterprises

Local Public Enterprises conducted by Thai local governments are often limited

in the form of organizational administration as the follows: 1) Limit the new
hiring by The Local Administration Act 2542 B.E, section 35 requiring the
payment of salaries and remuneration of civil staffs. Local employees must be

paid from revenues not exceed 40 % of the annual budget resulting in the
limited rate of the budget to hire staffs; 2) the rate of remuneration does not
attract well-qualified personnel. The salary and wage in the standards of the

local administration set by the federal standards are similar to or lower than that
of civil staffs and other public and private sectors.

3) Political Interest

A survey reveals that few local governments are interested or have plans to operate
Local Public Enterprises. The study found that the majority --369 local governments or
49 %-- ignored Local Public Enterprise operations due to the lack of political will coupled with

legal and administrative restrictions by the structure of local governments in four aspects.

= Incomes from Local Public Enterprise activities may affect the popularity of the

local administration.

The charges of the Local Public Enterprise applications such as utilities affect
the well-being of individuals and may reduce the popularity of political

candidates in the areas. Eventually, local governments cannot collect the actual
revenues, but carry the cost of operations instead.

= The local revenue structure excessively relies on subsidies from the central

government.

The proportion of subsidies for local governments in Thailand is more than 40
% of the total revenue. Local administrators then give the priority to the

subsidies from the central government. This becomes “Main Principle” of the
local administration rather than developing their own revenues.

= The common belief is that “Loss to the public is imperative and unavoidable.”

Operations of public services by many local governments may be in loss or gain
less due to the public interest in order to not become a burden to the public.