Performance-based budget management in higher education: International perspectives and their effects on Thailand

Abstract

Due to the government policy since 2001 focusing on the efficiency of resource administrationAnd allocation, a concept of “Strategic Performance-based Budgeting System (SPBBS)” has Been introduced into Thai educational system at all levels. Such a concept responds to the principles of educational system management spelt out in the National Education Act 1999, Concentrating on decentralization of authority including financial management and budgeting to educational institutions at all levels. Through a performance-based budgeting system, each related unit/ body has to participate more in decision making about how to efficiently and effectively use budgets with transparency and equity. The performance-based budgeting system has been fully translated into practice in Thai higher education since 2003. Many universities, in the course of becoming autonomous, have tried to implement such a kind of budgeting system in their institutions to upgrade the potential of financial resource management of each unit. Therefore, this literature review paper aims to explore and probe into some global and national views on performance based budget management and its significance in Thai higher education.