Future Response Fund Must Guarantee Local Fiscal Autonomy… Gyeongnam's Municipalities to See Over 3 Trillion Won Cut in General Grants
Published
Park Dong-cheol, chair of the Operations Committee of the Gyeongsangnam-do Provincial Council, said that the government's "Future Response Fund" must guarantee the fiscal autonomy of local governments. Chairman Park stressed that local governments must be able to plan and use their own budgets so that they can steadily carry out the work that local residents need.
According to calculations by Gyeongsangnam-do, if the government's proposal is applied, the general grants that Gyeongsangnam-do and its 18 cities, counties, and districts receive in 2027 will be calculated as 3,374.4 billion won less than if the current formula were maintained. General grants are funds that the central government distributes to fill the gaps in local governments' finances. Therefore, if this amount decreases, the money that local governments can use will also decrease by that much.
The Gyeongsangnam-do Provincial Government headquarters is also treating this issue as important. It is reported that the headquarters is closely reviewing how the government's proposal will affect local finances. The province and its cities, counties, and districts plan to convey the necessary opinions to the government so that local finances are not disadvantaged during the process of changing the grant formula.
This discussion is related to the question of how the central and local governments will divide finances. The Gyeongsangnam-do Provincial Council and the provincial government headquarters plan to continue monitoring how changes in general grants will affect residents' lives until the government's final proposal is confirmed.
Sources: m.sisakoreanews.kr
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