ABSTRACT

Performance management reform in the Thai public sector was first addressed formally in the Fifth National Economic and Social Development Plan. Performance management reforms emphasized in the National Development Plans include the following important issues: organization and work procedure improvement, budgeting system modernization, legal reform, and evaluation systems based on good governance principle. This chapter reviews organizational performance management reform and focuses on performance budget reform. Service process improvement is an obvious example of successful performance management reform in the public sector. As part of the Public Sector Performance Management Reform Program, in early 1999, Thailand launched a budget reform that would improve budget management and promote better flexibility and performance. The objective of budget reform in Thailand was to reorient the budget toward a greater focus on performance and result. Budget and performance reporting reforms at local level will need to be strengthened if fiscal decentralization is to succeed.