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재정

Working Paper

The Equalizing Effect of Financial Transfers : A Study of Intergovernmental Fiscal Relations in Korea

페이스북
커버이미지
  • 저자 김완순(金完淳)
  • 발행일 1974/04/01
  • 시리즈 번호 7402
원문보기
요약 The paper is divided into four sections. The first section is
concerned with the structure of local governments and finances
and offers a comprehensive picture of central-local financial
relations. The essential feature emerging from this section is an
overcentralized governmental structure and control of local
expenditures and revenues by the national government. While
this is the fact and political pressure for further centralization of
revenues and expenditures continues unabated, the point of view
of this paper looks upon the local governments providing some
local type services at their own discretion.

Relevant statistical data are assembled and examined in
Section Ⅱ in order to provide quantitative background for
interprovincial fiscal comparisons. the construction of indices of
provincial fiscal capacity, tax effort, and minimum service levels
receives, however, a major attention.

In Section Ⅲ, analysis of the financial adjustment
arrangements envisaged in the Local Shared Tax Law is
confined to central-provincial relations only. Intergovernmental
transfers of central government funds from province to county
and city governments are not examined. The period covered by
this section dates from 1962 during which Local Shared Tax
Law, Law 931, came into effect, and ends on August 3, 1972.
But frequent references are made to 1970 by way of illustration.
It should be noted that assessment of Korea`s intergovernmental
financial relations and the existing grant method during this
period is not meant to delve into the shortcomings of the past
adjustment system but to reflect upon them in an attempt to
propose for an alternative grant method, which is the major task
of the last section and of this paper.

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