Seoul Eyes Local Finance Study
The government may cut funding to local governments who manage their funds badly.The Ministry of Government Administration and Home Affairs and the Ministry of Planning and Budget said Tuesday they have jointly designed measures to reform local governments.
As part of the measures, the government says it may review local government investments of more than 3 billion won ($2.3 million) and restrict issuance of local government bonds if problems are found. Details of the plan are not expected until the end of the year.
"Although we provide local governments with 43 percent of national tax receipts every year, their finances are deteriorating," a budget ministry official said.
with the Korea JoongAng Daily
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