Abstract

Due to changes in the social environment, local governments are faced with increasingly difficult financial situations. Besides, due to the expansion of state aid projects, matching funds of local governments are being intensified due to increasing financial pressure.

If fiscal imbalances are accelerated, Seoul’s fiscal situation could crumble. In the context of efforts to minimize the imbalance, the major local fiscal coordination system of Seoul require evaluation and it is necessary to provide a reasonable basis.

In the current situation, adjustment of the current financial resources is important. Through the rational allocation of limited resources, it provides balanced and developed public services that are directly related to the quality of a part of civil life.

The purpose of this study was to analyze the resource allocation status and propose the development direction for a better system.

First, there are a variety of approaches in the allocation criteria of Joint Taxation of Property Tax. Since the introduction of the scheme, the financing gap has been mitigated but further increase in efficiency is required. This system modification is required, based on change in overall financial conditions. For this, different approaches of the allocation criteria are needed, considering the linkage issue between local fiscal coordination system.

Second, City Subsidy will be divided and calculated in consideration of the demand. Financial power is feasible with current standards but explanatory power is weak. In this study, we conducted an empirical analysis considering the financial power and the demand. The result showed higher demand explanatory variables. If we apply the demand, it appears better balanced and shows efficient allocation effect.

Finally, collection grants will be allocated considering the financial power and office install of collection grant. Collection grants can also reflect the effect of adjusting the financial resources. For this, it is necessary to provide a distributed application basis. When considering the financial power, analysis revealed that adjustment effect is better. Also, to minimize the inefficiencies of the tax administration, installation of office is necessary.

Currently, a strategic approach is required for determining the value we want to achieve through fiscal coordination in the autonomous district of Seoul and methods to reasonably allocate the resources.

 

 

Contents

01 Introduction

1_Background and Purpose of the Study

2_Main Contents and Research Methods

 

02 Local Fiscal Coordination System

1_Meaning and Function of Local Fiscal Coordination System

2_Type of Local Fiscal Coordination System

3_Future Direction of Local Fiscal Coordination System

 

03 Financial Status and Problems in Autonomous District of Seoul

1_Financial Status in Autonomous District of Seoul

2_Analysis of Horizontal Fiscal Imbalances between Autonomous District of Seoul

3_Financial Problems and Unbalanced Situation in Autonomous District of Seoul

4_Cause of fiscal imbalances in Autonomous District of Seoul

5_Assignment for Alleviating Fiscal Imbalances in Autonomous District of Seoul

 

04 Major Country Examples of Local Fiscal Coordination System

1_USA

2_Germany

3_Japan

4_Summary

05 Joint Taxation of Property Tax

1_Summary of Joint Taxation of Property Tax

2_Status of Joint Taxation of Property Tax

3_Issues of Joint Taxation of Property Tax

4_Survey: Joint Taxation of Property Tax

5_Empirical Analysis of Allocation Method

6_Empirical Analysis of Interlocking effect

7_Summary

 

06 City Subsidy

1_Summary of City Subsidy

2_Status and Problem of City Subsidy in Autonomous District of Seoul

3_Analysis of Influencing Factors and Subsidy Rate

 

07 Collection Grant

1_Summary of Collection Grant

2_Status and Problem of Collection Grant

3_Empirical Analysis of Allocation Effect

4_Office Install of Collection Grant

 

08 The Rational Arbitration of Fiscal Resources in Autonomous District of Seoul

1_Rational Allocation of Joint Taxation of Property Tax

2_Rational Allocation Standards and Efficient Allocation of City Subsidy

3_Efficient Operation and Allocation of Collection Grant