Information Use and Budget Allocation: How Information Plays A Role in Spending Efficiency and Effectiveness among Thailand’s Municipalities

Main Article Content

Pawinee Chuayprakong


Information is of high value because it can assist in economic, political, and administrative decision makings. Recent public sector reforms concentrating on public finance and budgeting have applied performance information to transform an incremental budget process into a more rational one. It also expects such budget outcomes as spending efficiency and effectiveness. As a result of this reform wave, municipalities in Thailand implemented the performance-based budgeting despite limited financial and administrative resources. This study quantitatively such reform endeavor with the survey research with a questionnaire inquiring the heads of department about their perceptions on budgetary incrementalism, organizational culture, performance information use and budget outcomes. The ordinal logistic regression analyses shows that performance information use is positively associated with enhanced budget outcome—high levels of spending efficiency and effectiveness. Budgetary incrementalism based on the performance-based budgeting is also proved to have the same effect on budget outcome but with lower impact. As policy recommendations to maintain and enhance such desirable budget outcomes, policymakers especially municipal executives should motivate local budget actors to implement the performance-based budgeting and coordinate closely with them to minimize possible conflicts. Meanwhile, as recommendations for future research directions, they should take into consideration levels of budget allocations and other types of local governments adopting the performance-based budgeting in order to strengthen the internal and external validity of how information use matters in the local budgeting realm.

Article Details



Akerlof, G. A. (1970). The market for “lemons”: Quality uncertainty and the market mechanism. Quarterly Journal of Economics, 84(3), 488–500.

Ammons, D. N., & Roenigk, D. J. (2015). Performance Management in Local Government: Is Practice Influenced by Doctrine? Public Performance & Management Review, 38(3), 514–541.

Booth, D. E. (1988). Urban growth and decline, budget incrementalism, and muncipal finance--Milwaukee, 1870-1977. Exploration in Economic History, 25, 20–41.

Corburn, J. (2007). Community knowledge in environmental health science: Co-producing policy expertise. Environmental Science and Policy, 10(2), 150–161.

Davis, O. A., Dempster, M. A. H., & Wildavsky, A. (1966). A theory of the budgetary process. The American Political Science Review, 60(3), 529–547.

Downs, A. (1967). Inside Bureaucracy. Long Grove, IL: Waveland Press Inc.

Downs, Anthony. (1957). An economic theory of political action in a democracy. Journal of Political Economy, 65(2), 135–150.

Faibisoff, S., & Ely, D. P. (1974). Information and information needs. Washington, D.C.: Office of Education (DHEW).

Frederickson, H. G., Smith, K. B., Larimer, C. W., & Licari, M. J. (2012). The Public Administration theory primer (2nd ed.). Boulder, CO: Westview Press.

George, A. L., & Bennet, A. (2004). Case studies and theory development in the social sciences. Cambridge, MA: The MIT Press.

Gerring, J. (2007). Case study research: Principles and practices. Cambridge, MA: Cambridge University Press.

Gerring, J. (2012). Social Science Methodology: A Unified Framework. New York, NY: Cambridge University Press.

Gilmour, J. B., & Lewis, D. E. (2006). Does performance budgeting work?: An examination of the Office of Managment and Budgbet’s PART scores. Public Administration Review, 66(5), 742–752.

Gujarati, D. N. (2003). Basic Econometrics. In New York. New York, NY: McGraw-Hill Higher Education.

Halcoussis, D. (2004). Understanding econometrics with economic applications (1st ed.). South-Western College Publication.

Ho, A. T. K. (2011). PBB in American Local Governments: It’s More than a Management Tool. Public Administration Review, 71(3), 391–401.

Hölmstrom, B. (1979). Moral hazard and observability. The Bell Journal of Economics, 10(1), 74–91.

Joyce, P. G. (2008). Does more (or even better) information lead to better budgeting?: A new perspective. Journal of Policy Analysis & Management, 27(4), 945–975.

Kittipanyasiri, A. (2015). Planning and budgeting for capital improvements in Thai municipalities: Problems in the development of Thai municipal self-governing capacity. Journal of African & Asian Local Government Studies, 4(1), 33–52.

Melkers, J., & Willoughby, K. (1998). The state of the states: Performance-based budgeting requirements in 47 out of 50. Public Administration Review, 58(1), 66–73.

Melkers, J., & Willoughby, K. (2005). Models of performance-measurementt use in local governments: Understanding budgeting, communication, and lasting effects. Public Administration Review, 65(2), 180–190.

Miles, M. B., & Huberman, M. A. (1994). Qualitative Data Analysis (2nd ed.). Thousand Oaks, CA: Sage Publications Ltd.

Moe, T. M. (1984). The new economics of organization. American Journal of Political Science, 28(4), 739–777.

Moynihan, D. P. (2015). Uncovering the circumstances of performance information use findings from an experiment. Public Performance & Management Review, 39(1), 33–57.

Moynihan, D. P., Lavertu, S., & Kamensky, J. (2012). Does involvement in performance management routines encourage performance information use?: Evaluting GPRA and PART. Public Administration Review, 72(4), 592–604.

Nagai, F., Funatsu, T., & Kagoya, K. (2008). Central-local government relationship in Thailand. In F. Nagai, N. Mektrairat, & T. Funatsu (Eds.), Local Government in Thailand: Analysis of the Local Administrative Organization Survey. Tokyo, Japan: Japan External Trade Organization. Retrieved from

Niskanen, W. A. (1971). Bureaucracy and Representative Government. Chicago, IL: Aldine-Atherton.

Onwuegbuzie, A. J. (2003). Expanding the framework of internal and external validity in quantitative research. Research in the Schools, 10(I), 71–89. Retrieved from

Ross, S. A. (1973). The economic theory of agency: The principal’s problem. The American Economic Review, 63(2), 134–139.

Srithongrung, A. (2018). An evaluation of performance-based budget reform in Asian countries. International Journal of Public Administration, 41(4), 257–267.

Sutheewasinnon, P., Hoque, Z., & Nyamori, R. O. (2016). Development of a performance management system in the Thailand public sector: Isomorphism and the role and strategies of institutional entrepreneurs. Critical Perspectives on Accounting, 40, 26–44.

Talbot, C. (2007). Performance Management. In E. Ferlie, L. E. Lynn Jr, & C. Pollitt (Eds.), The Oxford Handbook of Political Institutions (pp. 491–518). New York, NY.

Taylor, J. (2007). The usefulness of key performance indicators to public accountability authorities in East Asia. Public Administration and Development, 13(2), 341–352.

True, J. L., Jones, B. D., & Baumgartner, F. R. (2007). Punctuated-Equilibrium Theory: Explaining stability and change in public policymaking. In P. A. Sabatier (Ed.), Theories of the Policy Process (2nd ed., pp. 155–187). Boulder, CO: Westview Press.

Tullock, G. (1965). The politics of bureaucracy. Washington, D.C.: Public Affairs Press.

White, H. (1980). A heteroskedasticity-consitent covariance matrix estimator and a direct test for heteroskedasticity. Econometrica, 48(4), 817–838. Retrieved from

White, R., & Smoke, P. (2005). East Asian decentralizes. In World Bank (Ed.), East Asia Decentralizations: Making local government work (pp. 1–24). Washington, D.C.: World Bank.

Wildavsky, A. (1964). The politics of the budget process. Boston, MA: Little Brown and Company.

Wood, B. D. (2010). Agency theory and the bureaucracy. In R. F. Durant (Ed.), The Oxford Handbook of American Bureaucracy (pp. 181–206). New York, NY: Oxford University Press.

Wooldridge, J. M. (2016). Introductory econometrics. Boston, MA: Cengage Learning.

Zaltsman, A. (2009). The Effects of Performance Information on Public Resource Allocations: A Study of Chile’s Performance-Based Budgeting System. International Public Management Journal, 12(4), 450–483.

Zhao, Z., & Fan, W. (2019). Third-party evaluation and performance budgeting reform. In A. T. K. Ho, M. de Jong, & Z. Zhao (Eds.), Performance budgeting reform: Theories and international practices (pp. 211–224). New York, NY: Routledge.