Finance / Banking systems and nonbank financial institutions

Public sector management / Public expenditure and fiscal management

Thailand is going through a reform phase. A National Reform Council has been set up to recommend reform agenda in 11 areas, among which is fiscal and financial reform. The Country Partnership Strategy for Thailand, 2013-2016 is well positioned to support such reform through finance sector program and crosscutting priorities to mainstream good governance through support on financial management.

With limitation of the government annual budget, SFIs have been an important tool through which governments could implement fiscal and quasi-fiscal policies to serve the lower income segment and to stimulate the economy when needed. SFI activities involve a mixture of commercial and policy activities. There are 8 SFIs in Thailand. At the end of August 2014, total loan outstanding of all SFIs were B3.9 trillion or around 27% of total loan outstanding of banking sector.

Because quasi-fiscal activities of SFIs have significant implications for public policy and the general government financial position, the IMF Manual on Fiscal Transparency suggested that when public corporations undertake noncommercial activities on behalf of the government, the annual reports of public corporations identify these activities for fiscal transparency. PSA is an accounting system that records such noncommercial activities undertaken by SFIs.

2. Capacity Building

1. Improving PSA guidelines

The TA will engage 2.5 person months of international financial reporting expert and 1.5 person months of international fiscal governance expert. The TA will engage 3 person months of national public finance consultant.

The small scale TA will be implemented over 1 year from 1 January 2015 to 31 December 2015