Cuts in Local Government Aid
The Ministry of Planning and Budget said Monday it will reduce central government aid to regional governments that do not make a concerted effort to reduce spending.During a policy briefing to President Kim Dae-jung, the ministry said it will revise current laws so that subsidies for provincial and municipal governments will be allocated according to their achievements in restructuring their operations and how effectively they use taxpayers' money.
This year, the government will grant local authorities 42 trillion ($31.6 billion). Effective budget allocation has been hampered by current law, which requires much of the funds to be earmarked exclusively for certain projects, such as building roads, developing subterranean water sources or preserving farmland.
with the Korea JoongAng Daily
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