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STATE ENTERPRISES
WICHIT CHANTANUSORNSIRI
State enterprises will be requited to set up public service account (PSA) programmes by the 2010 fiscal year, says Sathit Limpongpan, the deputy permanent secretary of the Finance Ministry. The PSA system is aimed at improving the transparency of public accounts by separating out profits and losses incurred from operations dictated by state policies with normal operations.
The accounting system will then give policymakers a clearer view of the cost of public services and the actual amount of state subsidies required for supporting different programmes.
Mr Sathit said that while the cabinet had already approved in principle the use of PSAs, separate agreements would be needed for state enterprises operating in different sectors.
A specialised state financial institution, for instance, would apply the PSA concept for a loan product quoting interest rates below normal rates as set by state policies. Any added costs incurred by the state bank for implementing the policy could then be reimbursed by the government as a direct subsidy for the programme.
''The PSA concept will make it clear what the government needs to subsidise and how much money is required to implement these programmes,'' Mr Sathit said.
Officials say that in order to prevent potential moral hazard, conflicts of interest or abuse, clear lines of authority, risk controls and internal audit procedures will be required to ensure that funds are appropriately allocated. Independent external auditors could also be brought in to help monitor operations to ensure full transparency.
Monitoring systems would also ensure that state subsidies are not used by public organisations and state banks to cloak inefficiencies or excess cost.
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