Local Financial Reform
Financial reform of local governments
MOPAS encourages robust financial reform in local governments and state-invested enterprises in their communities to raise regional competitiveness and creativity
Supporting local governments to bolster local finances
- For the balanced development among local governments, MOPAS operates various local fiscal coordination systems.
- We provide annual financial support to local governments such as local shared tax (incl. special shared tax) and national treasury subsidies.
- To improve local fiscal responsibility, we conduct pre-post project reviews in collaboration with local governments.
- Pre-Project Review
- Mid term local fiscal plan
- Investment and loan reviews
- Local fiscal responsibility consultation
- Local debt issuance ceiling system
- Resident participation program budget
- Performance management program budget
- Post-Project Review
- Dual book-keeping system
- Local fiscal analysis and diagnosis
- Local shared tax incentives system
- Public announcement of local fiscal activities
- * Greater emphasis on post check policy for the realization of decentralization
Introducing local tax system to further support autonomous local governments
- MOPAS introduced new local income taxes to improve local governments' financial statues and fiscal autonomy.
- As a means of lessening taxpayers' burden, the proportion of national tax has been reduced.
Reforming tax services to increase user convenience
- MOPAS actively supports local residents through reform of local tax system and readjustment of taxes.
*Simplification of local taxes and revision of local tax laws
- Through WeTax, taxpayers can conveniently file local tax reports and make payments using simplified
online services.
Online local tax payment system : www.wetax.go.kr
Raising regional competitiveness with state-invested enterprise reform
- MOPAS supports 375 state-invested enterprises to meet the needs of local residents to maintain a sound financial system and to create additional jobs.
- To achieve this, we concentrate our efforts with local governments on supporting state-invested enterprises through public notices of fiscal management, improved evaluation system, and restructuring of the businesses.