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The effect of Decentralization Revenue Sharing System on the local government fiscal choice : A case study of GwangJu-shi

  • Korean Society and Public Administration
  • Abbr : KSPA
  • 2008, 19(1), pp.169-192
  • Publisher : Seoul Association For Public Administration
  • Research Area : Social Science > Public Administration

이원희 1

1한경대학교

Accredited

ABSTRACT

In 2004, the decentralization revenue sharing system was introduced to integrate the 149 subsidies which were operated under individual departments. This system caused a big financial relationship change between the center and local government. In this study, I delve into the local government fiscal choice under the new system. First, upper local government role was very important to maintain the previous public service level. Second, the current demand projects showed ongoing growth regardless of the central government supports. Specified to the target beneficiaries, including the elderly and the disabled, the level of service can not be reduced. Third, the level of the non current demand projects fluctuated with the level of the central government supports. This category contains the facility construction expenditure. Therefore, the future vertical integration of the decentralization revenue sharing system should be approached carefully. When the financial transfer is made in the field of the obligatory items, it only means the hand over of the financial burden onto the local government.

Citation status

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