2단계 재정분권 추진에 따른 지방자치단체 세입 변동 분석

Abstract

The purpose of this study is to analyze the impact of the 2nd stage of fiscal decentralization on local governments' finances. Specifically, a plan to promote the 2nd stage of fiscal decentralization was tentatively proposed, and the effects of it on local tax, local revenue, and fiscal equalization were analyzed. The results are as follows. First, fiscal neutrality between the central and local governments other than education offices is difficult to achieve. Second, local tax increases more in the lower-level than in the upper-level local governments, and local revenue decreases or increases in the upper-level or the lower-level local governments respectively. However, the extent of reduction in local revenue of the upper-level local governments can be narrowed as the fund which is financed by the part of the local consumption tax increase is operated. Third, the imbalance in local taxes among the lower-level local governments is alleviated, but the gap in local taxes among the upper-level local governments is intensifying. Excluding cities and counties, the imbalance in local revenues among the rest of local governments is alleviated. Fourth, local governments with reduced revenues occur, and the amount of the reduction decreases significantly as the fund increases. According to these results, the following should be considered when pursuing the 2nd stage of fiscal decentralization. First, it is necessary to come up with a concrete plan on the premise of net increase rather than neutrality of local finance. Second, if the local consumption tax increase is operated as a sharing tax between the upper-level and the lower-level local governments, discussion on the specific operation method is required in more detail. Third, it is required not only to specify the list and the transfer method of programs subject to the function redistribution, but also to analyze changes in the financial burdens at the local governments. Fourth, as a way to minimize the change in the financial burden due to the functional redistribution, it is necessary to install a fund that uses a certain percentage of the increase in local consumption tax as a resource and review its operation. Fifth, there is a need to prepare measures to conserve financial resources for local governments whose net revenues are decreasing. Lastly, it is necessary to find a way to gradually replace the lower-level local governments’ accounts among the transferred program preservation accounts in the FMDM (Fund for Mutual Development of Municipalities) by using the net revenue increases of the lower-level local governments.