Research Reports
A Study on Improvement Measures for Block Grants in the Agricultural and Rural Sectors
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AuthorKim, Taehoo
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Publication Date2025.01.21
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Original
Purpose of Research
○The increase in central government matching national subsidy projects is gradually constraining the fiscal management of local governments, leading them to focus more on executing central government policies rather than making autonomous policy decisions that reflect regional characteristics. This phenomenon appears across various sectors, including social welfare, health, agriculture, forestry, and fisheries, with a particularly notable decrease in the proportion of self-initiated projects by local governments in the agricultural and rural sectors. To address this issue, the government introduced the block grant system in 2010 through the Special Accounts Funds on Balanced National Development (SABND), enabling local governments to autonomously manage projects aligned with regional characteristics. While the block grant system aims to enhance autonomy and efficiency by allowing local governments the freedom to determine the specific budget details, various institutional challenges prevent the system from fully achieving its intended goals.
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