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A Study on the Reform Measure of the National Subsidy System

  • Public Land Law Review
  • Abbr : KPLLR
  • 2009, 43(2), pp.587-610
  • Publisher : Korean Public Land Law Association
  • Research Area : Social Science > Law

김충묵 1 강민규 2

1군산대학교
2군산대박사과정

Accredited

ABSTRACT

Discussion on autonomy and independence of the local finance has been continuously attempted as a trend of the decentralized governance system changes over a period of time. In spite of the continuous attempt, most of the Korean local autonomous entity has a financial structure of largely depending on support from the central government rather than raising the necessary funds of itself. Especially, national subsidy system has a function of an effective resource allocation of the central government along with a role as a significant income source of local autonomous entity. However, unlike local share tax, the national subsidy is proscribed to invest in segmented purposed business, and therefore, reveals various institutional and administrative problems. Therefore, it has been revealed from the study that it is urgent to find a solution for the national subsidy system to lower the burden of the local contribution and promote autonomy in local finance. As a conclusion, the top-down system with focus on the central government needs to transfer the government’s function and responsibility to local autonomous entity so that the local autonomous entity becomes the central of the national subsidy system with its autonomous decision and responsibility. In addition, systematic execution and regulation of the system, implementation of the unified administrative system for review, and implementation of the regulation system, which is specified in the law, are also necessary to be carried out. However, since the rapid transformation of the current system could raise a side effect due to the current local autonomous entity condition and the previous custom, and therefore, transformation should be carried out by stages based on the long term blueprint.

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