Research Reports
A Study on the effective management of the Agricultural Fiscal fund granted by Central Government in Local Governments
-
AuthorHwang, Euisik
-
Publication Date2009.10.01
-
Original
Korean government has tried to change the agricultural policy system and increase the amount of agricultural fiscal fund in order to cope with the market opening of agricultural products. But there were some critical viewpoints for the inefficiency of the increased agricultural fiscal fund from non-agricultural sectors. Agricultural sector needs to try to reform the inefficiency of the agricultural fiscal fund. The aim of this study was to search for more effective and efficient ways in which to operate the agricultural fiscal fund granted to local governments.
In order to find out the problems and the reform measures, this study checked and analyzed the current situation of agricultural fiscal fund, especially the amount and the procedure of agricultural fiscal fund granted to local governments and the role of local governments.
There were some problems to be reformed in the operation of the agricultural fiscal fund granted to local governments. First, there were too many specific sub-projects of each subsidy project. These specification of subsidy projects made the role of local governments reduced in carrying out the subsidy projects. Second, there was an inequality problem of the distribution of agricultural fiscal fund to local governments. In fact, there are some gaps of fiscal power among local governments. The local governments which have relatively low fiscal power can't drive their subsidy projects like other affordable local governments. This phenomenon might result in the inequality of rural development among local governments. Third, almost all of agricultural subsidy projects were planned by central government and local governments only carried out these projects. So, local governments haven't needed to plan their own subsidy projects and their planning skill have been decreased.
In order to improve these problems, this study presented the efficient operational system of agricultural fiscal fund in local government position. The newly developed system included the merger of similar subsidy projects, the abolition of ineffective or completed subsidy projects, the diversification plan of supporting the subsidy projects, and the way of improving the planning ability of the local governments for performing agricultural subsidy projects.
This study presented two supplementary devices for being the efficient system of agricultural fiscal fund granted to local governments - performance budgeting management and the differential grant system. First, this study introduced the concept and performance indicators of performance budgeting management, and the example of performance evaluation in the case of the subsidy project for supporting the wide-area APC. Second, this study analyzed the fiscal power gap among local governments and developed the program of applying the differential grant system.
The results of this study can be the useful references to reform the more efficient and effective operational system of agricultural fiscal fund granted to local governments and improve the abilities of planning and management of the agricultural subsidy projects in local governments' positions.
- Next
- Strategies for Establishing and Developing Rural Farming Organizations
- Prev
- Current Status of Fresh-Cut Produce Market in Korea and Stimulus Measures