Thai Public Capital Budget and Management Process

2019 ◽  
pp. 206-235
Author(s):  
Arwiphawee Srithongrung ◽  
Kenneth A. Kriz
Keyword(s):  
Local Governments ◽  
Public Investment ◽  
Public Capital ◽  
Capital Budgeting ◽  
Infrastructure Investment ◽  
Budget Process ◽  
Public Infrastructure ◽  
The Public ◽  
Debt Capacity

This chapter describes the public capital budgeting process in Thailand. Public infrastructure is very centralized; local governments do not play a large role in public infrastructure investment. The country's long-term physical planning is fragmented and lacks an effective long-term fiscal planning. The budget process is dominated by senior civil servants in the Bureau of the Budget, the Ministry of Finance, Bank of Thailand, and the National Economic and Social Development Board. Expensive projects financed by long-term debt bypass the budget process, and as a result, a comprehensive list of annually approved projects is unavailable to the public. This leads to public investment being driven almost entirely by debt capacity. Because of these factors, Thai governments have invested too little in public infrastructure, and the infrastructure investment is uneven across sectors.

scholarly journals REVISITING THE OPTIMAL STATIONARY PUBLIC INVESTMENT POLICY IN ENDOGENOUS GROWTH ECONOMIES

2008 ◽  
Vol 12 (2) ◽  
pp. 172-194 ◽  
Author(s):  
GUSTAVO A. MARRERO
Keyword(s):  
Endogenous Growth ◽  
Public Investment ◽  
Public Capital ◽  
Optimal Choice ◽  
Public Infrastructure ◽  
The Public ◽  
Developed Economies ◽  
Elasticity Of Intertemporal Substitution ◽  
Output Ratio ◽  
Public Investment Policy

One part of the literature on endogenous growth concerns models where public infrastructure affects the private production process. An unsolved puzzle in this literature concerns observed public investment-to-output ratios for developed economies, which tend to fall short of theoretical model-based optimal ratios. We reexamine the optimal choice of public investment in a more general framework. This setting allows for long-lasting capital stocks, a lower depreciation rate for public capital than for private capital, an elasticity of intertemporal substitution that differs from unity, and the need to finance a nontrivial share of public services in output. Given other fundamentals in the economy, we show that the optimal public investment-to-output ratio is smaller for low-growth economies, for economies populated by consumers with low preferences for substituting consumption intertemporally, and when public capital is durable. For a calibrated economy, we show that a combination of these factors solves the public investment puzzle.

The Case of Public Capital Budgeting and Management Processes in the United States

2019 ◽  
pp. 23-48 ◽  
Author(s):  
Natalia B. Ermasova ◽  
Carol Ebdon
Keyword(s):  
United States ◽  
Public Investment ◽  
Public Capital ◽  
Capital Budgeting ◽  
The United States ◽  
Federal State ◽  
Public Infrastructure ◽  
Positive Theory ◽  
State And Local ◽  
Main Components

This chapter provides a case study from the United States regarding public capital budgeting and management on the federal, state, and local levels. The U.S. case of the public investment process (or positive theory for United States public investment) is described and compared with the normative theory outlined in Chapter 1 to understand the deviation between the positive and normative theories. This chapter presents an analysis of four main components of the USA capital budgeting system including (1) long-term public capital planning, (2) annual public budgeting and financing, (3) project execution, and (4) public infrastructure evaluation. In addition, this chapter shows public infrastructure needs and financing issues in the United States.

scholarly journals Do local governments use municipal companies for off-balance-sheet financing?

2020 ◽  
Vol 7 (54) ◽  
pp. 242-257
Author(s):  
Weronika Stobieniecka ◽  
Anna Białek-Jaworska
Keyword(s):  
Capital Structure ◽  
Corporate Finance ◽  
Local Governments ◽  
Balance Sheet ◽  
Agency Problems ◽  
Ordinary Least Squares ◽  
Explanatory Variables ◽  
The Public ◽  
Debt Capacity

AbstractThis paper investigates whether municipalities in Poland use their municipal companies to increase debt capacity beyond the limitations imposed by the fiscal debt rules. The article presents corporate governance and agency problems on the example of relations between local government units and affiliated companies. We review and link literature on corporate finance, in particular capital structure, and public finance - debt liabilities of municipalities. We analyse a sample of 2,019 observations of municipalities and their municipal companies using the Ordinary Least Squares (OLS) method, where explanatory variables were taken from the public and corporate finance (leverage and its determinants). Results show that long-term debt of municipalities is positively associated with the leverage and size of municipal companies, but it is negatively related to their profitability.

scholarly journals The role of foreign investment in U.S. infrastructure: opportunities and challenges ahead

2020 ◽  
Vol 9 (3) ◽  
pp. 157-166
Author(s):  
Iordanis Petsas ◽  
Sofia M Vidalis
Keyword(s):  
Infrastructure Investment ◽  
Public Infrastructure ◽  
Sovereign Wealth Funds ◽  
The Public ◽  
New Construction ◽  
Useful Life ◽  
American Society ◽  
The U.S

The U.S. infrastructure has been issued a grade of D+ from the American Society of Civil Engineers because of the low funding for new construction, maintenance, and repair. It is now reaching the end of its useful life and cost estimates have reached as high as $3.6-trillion. The public infrastructure investment is at 2.4% of GDP, which is half of what it was 50-years ago. The U.S. has explored new ways to finance its infrastructure because of funding uncertainty. Investments such as, pensions, foreign investments, and sovereign wealth funds, manage trillions in assets and are forecasted to grow. This paper presents an overview in infrastructure funding and identifies possible approaches in addressing long-term financial needs with foreign capital partnership.

Public Capital Budgeting and Management Process in Russia

2019 ◽  
pp. 113-133
Author(s):  
Natalia B. Ermasova ◽  
Polina Ermasova
Keyword(s):  
Capital Expenditure ◽  
Public Investment ◽  
Public Capital ◽  
Capital Budgeting ◽  
Federal State ◽  
Public Infrastructure ◽  
Management Processes ◽  
Recent Trends ◽  
State And Local ◽  
Main Components

This chapter provides a case study from Russia regarding public capital budgeting and management at the federal, state, and local levels. This chapter presents an analysis of four main components of Russian capital budgeting system including (1) long-term public capital planning, (2) annual public budgeting and financing, (3) project execution, and (4) public infrastructure evaluation. This research explains the general challenges of capital budgeting process after the several decades of financial and budget reforms. This chapter presents the structure and classification of the capital budget as well as recent trends in capital expenditure levels in Russia. The authors review the capital resource allocations across sectors based on investment needs and national priorities in Russia. The chapter explains public investment management processes and presents recommendations to improve the efficiency of public capital budgeting in Russia.

The Case of Public Capital Budgeting and Management Process in Germany

2019 ◽  
pp. 49-72
Author(s):  
Natalia B. Ermasova
Keyword(s):  
Public Capital ◽  
Capital Budgeting ◽  
Management Process ◽  
Capital Investments ◽  
Public Infrastructure ◽  
Public Budgeting ◽  
Recent Trends ◽  
Main Components ◽  
Budgeting Process

This chapter presents an analysis of four main components of the German capital budgeting system including (1) long-term public capital planning, (2) annual public budgeting and financing, (3) project execution, and (4) public infrastructure evaluation. Germany provides good conditions for capital investments. This chapter explains main reasons for it: institutional framework, healthy public finance, structural reform, and special investment and redemption fund that gave a boost to investments in infrastructure. This case describes the capital budgeting process in Germany and explains the recent trends of public capital investments.

Estimating the Efficiency of Public Infrastructure Investment: A State-wise Analysis

2018 ◽  
Vol 19 (4) ◽  
pp. 1037-1049 ◽  
Author(s):  
Manvi Saxena ◽  
Varun Chotia ◽  
N.V. Muralidhar Rao
Keyword(s):  
Public Investment ◽  
Principal Component ◽  
Infrastructure Investment ◽  
State Governments ◽  
Public Infrastructure ◽  
State Budget ◽  
The Public ◽  
Analysis Technique ◽  
Indian State ◽  
Using Data

The objective of this study is to empirically analyse the relationship between public infrastructure investment and economic growth for India using yearly data for its 28 states (excluding Telangana). We have taken six major sub-sectors falling under infrastructure sector: transport; education, sports, arts and culture; energy; medical and public health; telecommunication; and water supply and sanitation. We have aimed to analyse the efficiency of each of these sub-sectors using data envelopment analysis (DEA). For every state, we have used the public investment data from the state budget files as input while sector-specific infrastructural criterions and sector-wise revenue are taken as outputs. We have gone by the logic that a state’s particular sub-sector of infrastructure will be highly efficient if it is able to use up the investment allotted to it and create a stronger infrastructure as compared to other states, subsequently generating higher amount of revenues. For each sector, various infrastructural criteria were clubbed together using principal component analysis technique to construct a single infrastructure index (representing the sector-wise output). Further, DEA was applied to calculate efficiency for each Indian state and they were ranked based on their efficiency scores. The analysis tells us that policy-making and budget allocation may be done in accordance with standing performances of different states in various sectors and the goals of the respective state governments.

scholarly journals Policy Watch: Infrastructure Investment and Economic Growth

1992 ◽  
Vol 6 (4) ◽  
pp. 189-198 ◽  
Author(s):  
Alicia H Munnell
Keyword(s):  
Capital Investment ◽  
Public Investment ◽  
Public Capital ◽  
Output Growth ◽  
Infrastructure Investment ◽  
Current Policy ◽  
Public Infrastructure ◽  
Political Leaders ◽  
Empirical Relationships ◽  
Direction Of Causation

In the late 1980s, David Aschauer (1989) triggered a long overdue dialogue among economists and political leaders when he published a study arguing that much of the decline in U.S. productivity that occurred in the 1970s was precipitated by declining rates of public capital investment. My own work confirmed these results (Munnell, 1990a). Spending advocates seized on these findings as support for increased public investment. The enthusiasm among policymakers for the early Aschauer results was matched, if not surpassed, by skepticism on the part of many economists. Critics of these studies charged that the methodology was flawed, that the direction of causation between public investment and output growth is unclear and that, even if the historical empirical relationships were estimated correctly, they provide no clear indications for current policy. Who's right? What do we know and not know about the link between public infrastructure and productivity? And what are the implications of these results for policy?

Mitigating Legal Risks in Nigeria's Project Finance Market

2017 ◽  
Vol 25 (3) ◽  
pp. 442-455
Author(s):  
Olufemi Soyeju
Keyword(s):  
Debt Financing ◽  
Project Finance ◽  
Infrastructure Development ◽  
Public Infrastructure ◽  
The Public ◽  
Fund Development ◽  
Legal Risks ◽  
Project Risks ◽  
Infrastructure Project

Project finance is a subset of financial techniques used traditionally in raising long-term debt financing for projects particularly in the energy and mining sectors of the economy. However, over the years, it has proved helpful in raising the required funds to drive public infrastructure projects through the public private partnership framework. By its nature, project finance is either non-recourse, or of limited recourse, to the project sponsors and hence identifying the various risks and determining who should bear these risks is the overarching essence of project finance technique. These uncertainty and risks may have significant impact on outturn costs or benefits of a particular infrastructure project. Generally, typical project finance transaction is fraught with many project risks which sometimes overlap. However, among these inherent risks there are some that are legal in nature and hence they are referred to as legal risks. So, this article seeks to interrogate the related legal risks in project finance as a financing technique to fund development of infrastructure and in particular, the procurement of critical public infrastructure assets in Nigeria and the various ways by which these risks can be mitigated to drive infrastructure development in the country.

scholarly journals Government public infrastructure investment and economic performance in Spain (1980-2016)

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jose Perez-Montiel ◽  
Carles Manera
Keyword(s):  
Public Investment ◽  
Infrastructure Investment ◽  
Annual Data ◽  
Public Infrastructure ◽  
Cross Sectional ◽  
Content Type ◽  
Autonomous Communities ◽  
Vector Autoregressive ◽  
Acyclic Graphs ◽  
Multiplier Effects

Purpose The authors estimate the multiplier effect of government public infrastructure investment in Spain. This paper aims to use annual data of the 17 Spanish autonomous communities for the 1980–2016 period. Design/methodology/approach The authors use dynamic acyclic graphs and the heterogeneous panel structural vector autoregressive (P-SVAR) method of Pedroni (2013). This method is robust to cross-sectional heterogeneity and dependence, which are present in the data. Findings The findings suggest that an increase in the level of government public infrastructure investment generates a positive and persistent effect on the level of output. Five years after the fiscal expansion, the multiplier effects of government public infrastructure investment reach values above one. This confirms that government public infrastructure investment expansions have Keynesian effects. The authors also find that the multiplier effects differ between autonomous communities with above-average and below-average GDP per capita. Originality/value To the best of the authors’ knowledge, no research uses dynamic acyclic graphs and heterogeneous P-SVAR techniques to estimate fiscal multipliers of government public investment in Spain by using subnational data.

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