Excellent Ratings in 8 Indicators Including Financial Soundness
[Jeonju=Asia Economy Honam Reporting Headquarters Reporter Kim Han-ho] Jeonbuk Province announced on the 30th that it received the highest grade, "A," in the "Local Government Financial Analysis," a comprehensive analysis and evaluation of the financial status of local governments nationwide conducted by the Ministry of the Interior and Safety.
The Local Government Financial Analysis is a financial monitoring system by the Ministry of the Interior and Safety aimed at enhancing the soundness and efficiency of local finances and ensuring the accountability of local governments.
It analyzes 13 indicators across three areas: soundness, efficiency, and effectiveness, classified into 14 types of local governments with similar population and financial conditions.
Jeonbuk Province received excellent evaluations in 8 out of the 13 indicators in this financial analysis.
In the financial soundness area, it received excellent evaluations in three indicators, including the managed debt ratio (local debt balance/revenue settlement amount), through planned debt and liability management. Jeonbuk’s managed debt ratio was analyzed at 5.29%, which is 2.56% lower than the average of 7.85% for similar local governments.
In the financial efficiency area, it was evaluated as excellent in four indicators, including the delinquent tax management ratio and local subsidy ratio.
This is attributed to active delinquent tax management such as operating a metropolitan collection task force in cooperation with cities and counties, and efficient management of subsidy projects from budget formulation to performance evaluation through the Local Subsidy Review Committee.
Additionally, in the financial planning area, one indicator, the tax revenue error ratio, received an excellent evaluation. Jeonbuk Province explained that this was possible due to comprehensive and meticulous analysis of government policies and real estate transaction trends when estimating local taxes.
Jeonju=Honam Reporting Headquarters Reporter Kim Han-ho stonepeak@asiae.co.kr
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