S. Korean local governments' fiscal independence ratio lowest in 2013

The fiscal independence ratio of South Korean local governments dropped to its lowest level this year since 1991 as tax revenues fell and subsidies from the central government increased, data showed on Tuesday.

According to the data compiled by the Ministry of Security and Public Administration, the fiscal independence ratio for 244 local autonomous governments stood at 51.1 percent for 2013, compared with the 52.3 percent posted last year.

The 2013 figure also marks the lowest since 1991 when South Korea introduced a local autonomy government system.

The ratio roughly represents the portion of local tax revenues and non-tax income to all revenue sources, and indicates a local autonomous government's ability to finance its operations without state subsidies.

Among the surveyed local autonomous governments, the Seoul Metropolitan Government topped the list at 87.7 percent, followed by Incheon with 64.4 percent, Ulsan with 62.7 percent and Gyeonggi with 60.1 percent.

The data showed that 90.2 percent, or 220 local autonomous governments, posted a fiscal independence ratio of below 50 percent.

 

(Yonhap News)