Last year, Thailand commenced our Public            2
          Expenditure Management Program.
   Previous year presentation…
   •  Thai PEM Framework
       – Strategic Performance based Budget System
       – Decree on Good Governance and Government Administrative Plan
       – OECD Best Practices for Budget Transparency
       – IMF Code of Good Practices on Fiscal Transparency
   •  Thai PEM Main Focus
       – Linkage between national priorities and budgeting within the 
        framework of sustainability
       – Legal framework and Institutional arrangements for public spending
   •  PEM Review Implementation Plan
       – Mid term review in early 2006
       – Start with Fiscal Sustainability component
        Implementation of the Thai PEM 
        Implementation of the Thai PEM 
        abides by the three fundamental 
        abides by the three fundamental 
                                                                3
        principles of Best Practiced PEM and 
        principles of Best Practiced PEM and 
        covers the whole process of 
        covers the whole process of 
        delivering public services.
        delivering public services.
       • Three Principles
          – Maintaining aggregate fiscal discipline
          – Allocating public resources in accord with 
            strategic priorities
          – Promoting the efficient delivery of services
       • Coverage
          – Formulation of policies
          – Planning
          – Allocation of resources
          – Implementation
                                                   4
       In the past year, Thailand has made 
       In the past year, Thailand has made 
       progress in the five main components 
       progress in the five main components 
       of PEM/R.
       of PEM/R.
          Critical tools have been identified in 
          Critical tools have been identified in 
                                                                                     5
          order to successfully reach each   of the 
          order to successfully reach each   of the 
          key PEM objectives.
          key PEM objectives.
                 PEM                          TOOLS
                 PEM                           TOOLS
             Objectives              •
             Objectives               MTEF Top Down/Bottom up
       Maintain Long-term            •Fiscal rules
        Maintain Long-term 
   Aggregate Fiscal Discipline •Budget Ceiling
   Aggregate Fiscal Discipline
                                     •Ratio of Capital/ Operating Budget
                                     •Mid-Term Review
                                     •
       Strengthen Strategic           National Strategic Target
       Strengthen Strategic 
                                     •
      Allocation of Resources         Ministerial Strategic Plan & Budget Ceiling
      Allocation of Resources
                                     •
                                      Integrated agenda based Budget Plan
                                     •
       Increase Operational           Service Delivery Targets & Public Service 
       Increase Operational          Agreement
              Efficiency
              Efficiency             •
                                       Output Profile
                                     •
                                       Performance Indicators
                                     •
       Enhance Managerial             Increasing roles of front line manager
       Enhance Managerial            •
                                      PPP & other Public financial innovations
             Flexibility 
              Flexibility            •
                                      Performance measurement 
        and Accountability
         and Accountability           Realignment of Program-Activities-Outputs 
                                     •
                                       GFMIS
                                     •
   Enhance Fiscal TransparencyImprove Performance and Financial Report 
   Enhance Fiscal Transparency
                                     •
                                       Improve the Format of Budget Documents 
                                     •
                                       Improve Budget Information System 
                                                                                                               6
      Tools for each objective are under various stages 
      Tools for each objective are under various stages 
      of development; some key ones have been 
      of development; some key ones have been 
      implemented.
      implemented.
                                                                            Progressive Status
         PEM                                                                  Desi             Use  Refine 
    Objectiv                            TOOLS                           Ini   gn &  Pilot       in        & 
                                                                        tia   Dev Testi        Bud Institu
          es                                                            tiv   elop      ng      get    tionali
                                                                         e    men              Proc       ze
                                                                                t              ess
                         1.1  MTEF Top Down / Bottom up
   1. Maintain  1.2 Fiscal Rules
   Long-term 
   Aggregate             1.3 Budget Ceiling
   Fiscal                1.4 Ratio of Capital /Operating 
   Discipline            Budget
                         1.5 Mid – Term Review