Budget management of local government organizations

Abstract

Local administrative organizations (LAOs), which play a crucial role in local development and maintain close proximity to the people, are responsible for responding to public needs and enhancing the quality of life of local residents. Consequently, the well-being and happiness of people in each locality largely depend on the effectiveness of the management of these organizations, particularly in terms of budget administration. When budget management is conducted within a framework of efficiency and necessity, with primary consideration given to public benefit, it contributes significantly to organizational success and the achievement of established objectives. Local administrative organizations are government entities designated as budget-receiving units under the provisions of the Budgetary Procedures Act B.E. 2561 (2018). The management of their expenditure budgets is governed by relevant laws, regulations, and directives issued by the Ministry of Interior and the Ministry of Finance. Budget administration is therefore of paramount importance, as it serves as a fundamental instrument for organizational and operational management. Accordingly, LAOs must adhere to sound principles of budgetary management that are aligned with their institutional objectives. This includes budget formulation and proposal, budget allocation, monitoring, auditing and evaluation, as well as financial and accounting management, procurement, and asset management. These functions constitute essential responsibilities that directly influence the overall management system, the development of organizational understanding, and the effective organization of budget-related operations.