On the 16th, the National Governors' Association of the Republic of Korea urged the government to maintain the current system

Gyeongbuks-do Governor Lee Cheol-woo emphasized that the establishment of the Future Response Fund pursued by the government should not shake the local allocation tax resources and the current calculation system.

Governor Lee made these remarks during a meeting of the National Governors' Association of the Republic of Korea held in Jeju on the 16th. At the meeting, city and provincial governors from across the country discussed the impact of the creation of the Future Response Fund on local finances and ways to expand local finances.

Governor Lee pointed out, "In a situation where the crisis of regional extinction is deepening due to metropolitan concentration and regional disparities, simply raising the local consumption tax rate has limits in resolving the difficulties of regions with relatively poor financial conditions."

He continued, "The role of the local allocation tax in mitigating regional financial disparities and supporting basic local administrative services is crucial. Even in the process of establishing the Future Response Fund, it is necessary to fully consider the impact of local allocation tax resources and calculation systems on regional financial conditions."

He also pointed out that a cautious review is needed for the method of supplementing the resources allocated to local governments with separate purpose-specific support funds. He stated, "The fiscal autonomy of local governments may be limited. To ensure that local governments can autonomously promote necessary projects according to regional conditions and demands, the existing local allocation tax resources must be stably guaranteed."

Furthermore, he emphasized, "Since institutions serving as the foundation of local finance directly affect regional financial conditions and administrative services, sufficient consultation and review are necessary. We must faithfully convey the local stance to the government and the National Assembly so that the statutory resource allocation structure and calculation system under the current Local Allocation Tax Act can be stably maintained."

Attendees shared the view that a financial operation method is needed to respect the fiscal autonomy of local regions while supporting national policy tasks and regional development.

The association plans to pursue joint recommendations and government consultations to secure stable financial resources for local allocation taxes and expand local finances. Specific recommendation details and follow-up measures will follow the joint recommendation statement and official resolution confirmed by the association.

Meanwhile, during the meeting, pending local autonomy issues were also discussed, including ways to improve the appointment procedure for the president of the Korea Research Institute for Local Administration and a proposal for the joint utilization of the Criminal Justice Information System (KICS) by special judicial police officers.

[ⓒ Global Economic Times. 무단전재-재배포 금지]