Social Expenditure of Local Government and Intergovernmental Fiscal Relationship

Abstract

◈ 지방정부의 세입과 세출구조 ◈ 사회부문 재정사업에 대한 지방재정 부담 현황 ◈ 지방재정 부담의 형평성 분석 ◈ 지방재정분권의 효과성 분석 ◈ 외국의 사회부문 사업과 지방재정부담 사례분석 ◈ 지방재정 부담완화의 주요과제

The study examines social expenditure and revenue structure of local governments by local government type and the problems which local governments face with respect to social expenditure. Social expenditure of local government mostly consists of mandatory expenditures with matching grant, making heavy burden for local government with lower local revenue source. It also results regional inequality in the provision of social services as well as social expenditure, because regions with lower local revenue source tend to have higher demand for social welfare with higher portion of the old and the poor. In addition to that, 67 social programs funded by matching grant were transferred into local government, making financial burden and equity issues heavier. The study analyzes the social expenditure of 234 local governments from 2004 to 2006, and examines how regional inequality of social expenditure evolves over this time period. The study analyzed the inequality of both social expenditure out of local revenue and matching grant. It also examines the trend of inequality in kwang-yeok level government and the inequality of each sector of social expenditure, providing political suggestions on reasonable intergovernmental fiscal relationship with respect to social programs.