Last Year's Excess Tax Revenue of 11.2 Trillion Won Allocated to Local Grants and Education Finance Grants

[Asia Economy Sejong=Reporter Son Seon-hee] Of the 18 trillion won in general account surplus generated last year due to higher-than-expected government tax revenue, 11.2 trillion won was allocated as local allocation tax and local education finance grants.

According to the Ministry of Economy and Finance on the 15th, 5.9 trillion won in local allocation tax and 5.3 trillion won in local education finance grants were distributed to local governments (metropolitan cities/provinces, city/provincial offices of education). A special allocation tax of 151.5 billion won, used for disasters and other purposes, will be allocated later when related needs arise. This is in accordance with relevant laws such as the National Finance Act, Local Allocation Tax Act, and Local Education Finance Grants Act.

Ando-geol, the 2nd Vice Minister of the Ministry of Economy and Finance, stated, "By promptly allocating the settlement portion of the local allocation tax using the surplus generated from last year's improved tax revenue, we expect it to help expand local government finances." He added, "It is anticipated that the funds can be actively used for urgent needs such as COVID-19 quarantine response carried out by local governments, revitalizing the regional economy, addressing learning loss due to the prolonged COVID-19 pandemic, and improving the educational environment of aging schools."

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