Smallholding Farmers

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One Tambon One Product – – 800 800 0.4

Village Fund 66 071 8218 – 74 286 36.3

Health Security for All 1910 53 094 55 709 110 713 54.2

New Entrepreneur Promotion – 182 – 182 0.1

Nominal Total (millions of baht,

current prices) 70 352 70 816 63 227 204 395 100.0

Real Total (millions of baht,

2003 prices) 72 117 72 107 63 227 207 451 100.0

Note: The People’s Bank Project uses the operating budget of the Government Saving Bank,

which provided about 10 191 million baht of credit in 2001–2002.

Source: National Economic and Social Development Board, Bangkok.

The pre-existing poverty-related programs of the government and new

programs which do not fall within the fi ve categories identifi ed within Table

5.9 plus the additional People’s Bank category have been reclassifi ed by

the Bureau of the Budget for statistical reporting purposes covering the

years 2000 onwards. The new data are summarized in Tables 5.10 (number

of projects) and 5.11 (budgets of the major categories). Fortunately, in its

reclassifi cation of poverty-related expenditures the Bureau of the Budget

has provided retrospective data for one year, 2000, for which data are also

available under the former classifi cation shown in Table 5.8. Comparing

the two data sets for that year (Tables 5.11 and 5.8), it is clear that the new

classifi cation is signifi cantly broader, approximately doubling the size of

the ‘poverty-related’ category, so that in 2002 it reached 13 per cent of total

government expenditures.

Clearly, the reclassification of government expenditures reflects a

defi nitional change, and an element of arbitrariness necessarily enters these

classifi cations. However, in the one year for which data are available under

both classifi cations, 2000, the defi nitional change increased ‘poverty-related’

expenditures by 5.8 per cent of total government spending (from 4.6 to 10.4

per cent). The question is whether the new classifi cation accurately refl ects

the true size of poverty-targeted expenditures. That is, we wish to know the

extent to which these expenditures really are ‘poverty-related’. We take up

this question below.

Table 5.10 Thailand: poverty reduction expenditures, number of projects

– 2000 to 2002

Category 2000 2001 2002

Poor and low-income people 3 3 1

Infrastructure 23 63 18

Agriculture and natural resources 36 32 17

Health and social welfare 28 32 91

Education and training 11 10 32

Others 69 19 26

Total 125 118 104

Source: Bureau of the Budget, Bangkok.

Table 5.11 Thailand: Poverty reduction expenditures, budgets – 2000 to

2002

Category 2000 2001 2002

Poor and low-income people 8.9 9.4 1.0

Infrastructure 25.8 15.9 23.5

Agriculture and natural resources 6.1 8.4 14.7

Health and social welfare 23.5 27.0 44.2

Education and training 3.3 3.3 4.5

Others 20.8 28.8 45.2

Nominal Total (billions of baht,

current prices, total above items) 88.0 92.8 133.1

As % of total government expenditure 10.4 10.6 13.0

Real Total (billions of baht,

constant 2003 prices, CPI defl ator) 92.0 96.9 135.5

Note: Actual expenditures for FY 2003 were not yet available under this classifi cation at the

time of writing, but budgeted expenditures were 133.6 billion baht, current prices.