Despite several attempts at decentralisation reform since the 1990s, Thailand’s governance system remains highly centralised. Strong central government control over subnational governments has not led to uniform service levels or harmonised revenue bases. On the contrary, there are marked fiscal disparities between Thailand’s subnational governments. Thailand’s dual multi-level governance and high number of subnational governments (LAOs) results in a governance system that is complex and fragmented. There are several alternatives available for Thailand to tackle the current problems. A clear nationwide plan should be developed to prepare for reforming the subnational government structure, financing system, and spending and revenue assignments. LAOs should be empowered by enhancing their spending and revenue autonomy. Reorganising the current spending assignments between government levels should be another priority. Merger reforms or enhanced co-operation should be considered to build adequate capacity among subnational governments. A stronger own revenue base would contribute to self-rule and accountability among Thailand’s subnational governments. To that end, LAOs should rely on at least one important tax base: for instance, a local surtax on the personal income tax collected by the central government would be an option. In addition, Thailand should reform other sources of local financing, such as the property tax and the transfer system.