Integration of Local Financial Burden Review Committee and Local Fiscal Crisis Management Committee
Review Role on National Subsidy Project Funding Burden and Local Tax Revenue Matters
The Local Finance Management Committee is taking on a role to alleviate the financial burden on local governments. The Local Finance Burden Deliberation Committee and the Local Finance Crisis Management Committee have been integrated to form the Local Finance Management Committee, which was launched on the 17th. The committee plans to strengthen the prior consultation process through a working-level consultative meeting between central government ministries and local governments.
On the 20th, the Ministry of the Interior and Safety announced that the Local Finance Management Committee held an appointment ceremony and began full-scale deliberation activities. The committee integrates the functions of the Local Finance Burden Deliberation Committee, which reviewed matters involving financial burdens on local governments, and the Finance Crisis Management Committee, which reviewed issues related to financial crises of local governments, to comprehensively deliberate on matters concerning local finance.
On the afternoon of the 20th, Go Gi-dong, Vice Minister of the Ministry of the Interior and Safety, attended the 'Local Finance Management Committee Appointment Ceremony and 1st Meeting' held in the medium conference room on the 12th floor of the Government Seoul Office Building, Sejong-daero, Jongno-gu, Seoul. He presented the appointment letter to Professor Lee Jae-won of Pukyong National University, who was elected as the vice chairman, and took a commemorative photo. [Photo by Ministry of the Interior and Safety]
In particular, the committee is responsible for reviewing matters related to the sharing of resources between the central government and local governments in national subsidy projects, or matters that significantly affect local tax revenues, thereby playing a role in alleviating the financial burdens that local governments may face. It also deliberates on matters related to local government financial diagnosis, designation or cancellation of designation of financial crisis or cautionary local governments.
At the first meeting held in conjunction with the appointment ceremony, the committee conducted the appointment of civilian members and discussed and deliberated on ▲improvement plans for negotiations on local government financial burdens for the 2025 budget ▲the 2024 local tax expenditure basic plan.
Above all, considering the current difficulties in local finance, the committee decided to enhance the effectiveness of negotiations on local government financial burdens in national subsidy projects. Specifically, it plans to operate a working-level consultative meeting among the Ministry of the Interior and Safety, central government ministries, and local governments to strengthen the prior consultation process and to increase the effectiveness of local financial burden negotiations by revitalizing face-to-face deliberations of the committee.
Vice Minister Ko Gi-dong said, "Through the active activities of the Local Finance Management Committee, we will rationally adjust the scale of local government funds organized in connection with national subsidy projects to alleviate the financial burden on local governments," adding, "We will do our best to meet the demands for soundness in local finance."
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