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The Current Status and Responses to Fiscal Crisis of Local Governments

  • Crisisonomy
  • Abbr : KRCEM
  • 2011, 7(4), pp.37-56
  • Publisher : Crisis and Emergency Management: Theory and Praxis
  • Research Area : Social Science > Public Policy > Public Policy in general

이승철 1

1동국대학교

Candidate

ABSTRACT

No local government ever experienced fiscal crisis so many times, for the they could procure insufficient sources through the central government. But, local tax revenue, local bonds, expenditure in social welfare expense, and local debts considered on, it is possible for some local governments to go through a fiscal crisis due to worse finance, if economy gets worse. So, it is necessary to construct a response strategy to local fiscal crisis in order to prevent from the local governments' fiscal crisis. First, it is necessary to improve the structure of local tax revenues. The organization concerned has to modify the current local revenue structure, laying an emphasis on revenue items, to increase local tax incomes and secure extra-tax earnings as well as to modify into the structure enhancing self-financial resources. Second, it is necessary to give body to financial burden between the local government and the central government. The organization concerned has to arbitrate expenditure affairs to concrete financial loads between regions and central governments. The organizations concerned has to get inhabitants' approval through a referendum when they issue municipal bonds to secure liability and enhance.Third, the local government has to issue local bonds through civil votes. Fourth, Korea has to introduce the institution of fiscal crisis management. The institutions of managing financial crises are constructing financial crisis management system and introducing financial bankruptcy.

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