Revenue Diversity and Performance Assessment of Local Administrative Organizations of Subdistrict and Municipal Administrative Organizations in Thailand

Abstract

This study had the objective to investigate the relationship between Revenue diversity and the efficiency assessment of local administrative organizations in Thailand since the local administrative organizations currently have to mainly depend on the Revenue from the government. Consequently, the local administrative organizations lacked decision-making authority about the management of initiatives to create public services and manage resources appropriately for the people. Therefore, this study aimed to study the fiscal Revenue diversity generated through the performance of local administrative organizations through the equation for the analysis of the dependent variable data as fractions or percentages. The population this study included 7,774 local administrative organizations in Thailand through data collection in the fiscal year 2019. The findings revealed that Revenue diversity was related to the performance assessment scores of the local administrative organizations in Thailand with a statistical significance and reliability of 95%. It was explained that when Revenue diversity increases by 1 unit, the performance assessment scores of the local administrative organizations increase by 0.03%. According to the findings, policy recommendations are as follows: 1) The government should promote various forms of taxation by determining the revenue structure and imposing taxes and fees. 2) The study found that local government organizations had low-income diversity, with an average score of 0.4123. To improve public services, these organizations should prioritize collecting local taxes. 3) The municipalities and subdistrict administrative organizations should increase the efficiency of revenue collection to enhance the level of public services in the area by improving the law as a foundation for clearly determining the source of income of local administrative organizations in collecting income based on each area's context.