지방자치단체의 재정분권 실현을 위한 개혁방안

Abstract

“Decentralization” as a factor in a local self-governing system is the political principle to allocate authority and accountability of the State and local governments among the State and local governments, and to ensure independence, the right to self-determination of local government. Based on this principle, the Special Act on the Decentralization and Reorganization of Local Administrative System provides the tasks for advancement of decentralization. These tasks are: 1) Devolution of Authority, Readjustment of Business Classification System; 2) Reorganization of Special Local Administrative Agencies; 3) Expansion of Local Finance and Strengthening Soundness thereof; 4) Revitalization of Local Council and Reformation of Local Election System; 5) Expansion of Resident Participation; 6) Strengthening Capability of Self-Governing Administration; and 7) Establishment of Cooperation System between State and Local Governments. The Act provides to "Expansion of Local Finance and Strengthening Soundness thereof". Its purpose is to secure new tax items and convert national tax to local tax so that the proportion of local tax is expanded. This will help strengthen the accountability of financial adjustment for areas lagging behind and to devise the stability of local finance by expanding revenue of its own. It will also secure the rationality of budgetary expenditure so that autonomous affairs are performed smoothly. Finally, it can help achieve fruitful local autonomy that promotes the creativity and diversity of provinces. Korea's local financial system is based on these basic principles of decentralization that were implemented in various forms according to the replacement of administration. The most common form used is that of financial management and control. However, this form doesn’t fulfill its functions, thus it cannot be used for local fiscal decentralization. Local fiscal decentralization is difficult to be discerned due to a number of external factors. Factors such as the Asian and global financial crisis and the various local fiscal-management problems. Also, another factor is that the local governments and local public enterprises are heavily in debt and while the budgets of local governments are growing, the local tax rates remain low. Based on the problems encountered in local finance, improvements are suggested as follows: (1) To Expand Local Finance and Improve the Financial Structure•Transfer central government tax resources to local government•Introduce 'taxes not fixed by law’•Improve the functional distribution between central and local governments•Reduce a discretionary expenditure (2) To Improve the Financial Management System of Local Government•Improve the local investment appraisal system•Improve the Local Share Tax System•Improve the systems for safety diagnoses•Improve the early warning system, the local bond system•Improve the local finance deliberation committee (3) Ensuring the Self-Control of Local Finance•To enhance efficiency for finance•To improve the Local Assembly's roles•To improve the internal audit and inspection system of the local government•To improve the participatory budgeting system (4) Ensuring the Effectiveness of the Settlement•To ensure ample time for the settlement•To replace the Special Committee on Budget and Accounts with the Standing Committee on Budget and Accounts•To ensure the effectiveness of fiscal control over the settlement