The purpose of this study is to search for more effective and efficient ways in which to operate the national subsidy and matching fund systems. Historically, the two most important intergovernmental grants have been a local shared tax and a national subsidy that are the basis of the
intergovernmental grant system in Korea. The local shared tax tries to alleviate vertical or horizontal fiscal imbalance: the national subsidy is associated with specific projects in which the central government is involved to maximize public interest.
In theory, the way to finance specific local public goods and services is dependent upon two criteria: the degree of the central government's interest and the geographical area of the spillover effects. However, the current national subsidy system is not operated in such a way. Therefore, this study suggests a reclassification of national subsidies and a readjustment of matching rates as a reform of the intergovernmental grant system.
In order to reclassify the current national subsidies, this study checks over individual laws on which individual national subsidies are grounded. In order to measure the spillover effects of individual national subsidies, this study conducts a series of questionnaire surveys and interviews
with local public officials. Because the current matching rates have a multi-level structure, the system needs to be simplified to four levels (100, 70, 50, and 30 percent). As a simplified level of matching rates is applied to national subsidies with similar contents and characteristics, but
different matching rates, irrational problems related to setting up a matching rate should be alleviated to a certain degree.
The matching fund program is not well known and its meaning is very confusing, since the term "matching fund" is arbitrarily employed, depending on its user. In order to eliminate this confusion, this study suggests usage of appropriate terms, depending on the types of matching fund programs. Also, in the case of matching fund programs, various matching rates exist, as in national subsidies.
Therefore, this study suggests a standard matching rate for matching fund programs. Another problem is that matching fund programs are very loosely managed because there is no standard program management procedure. Therefore, this study suggests legal provisions to prescribe major issues related to effective management of matching fund programs.
국고보조금 및 매칭펀드제도 개선방안(A study on reform of national subsidy and matching fund systems)
|Subject Country||South Korea(Asia and Pacific)|
|Subject||Government and Law < Public Administration|