Ministry of the Interior and Safety Selects 26 Local Governments Excelling in Local Non-Tax Revenue Management

"Local Non-Tax Revenue Establishes Itself as the Cornerstone of Local Finance"

[Image source=Yonhap News]

[Asia Economy Reporter Kiho Sung] Local tax non-revenue*, a key pillar of local government autonomous revenue sources, has shown steady growth as a result of active and creative efforts and management by local governments.

In this regard, the Ministry of the Interior and Safety analyzed and diagnosed the operation performance of local tax non-revenue of 243 local governments nationwide on the 25th and announced the results.

The main contents of the analysis and diagnosis results of local tax non-revenue operation performance are as follows. The analysis and diagnosis results for the 2021 fiscal year showed that the collection amount and collection rate of local tax non-revenue are increasing. Along with this, the level of arrears clearance has also improved, indicating qualitative improvement in the operation of local tax non-revenue. This is analyzed to reflect the active efforts of local governments, such as promoting local tax non-revenue collection and arrears management policies that reflect regional circumstances to improve the collection rate of non-tax revenue.

Representative excellent cases include Gangwon-do, which rationally improved non-tax revenue imposition through integrated management of road occupancy fees; Yeoncheon-gun, Gyeonggi-do, which improved the ability to query arrears data from individual systems in an integrated manner; and Dalseo-gu, Daegu, which collected seized scrap car payments through on-site investigations of scrap yards, all of which received favorable evaluations. In addition, the majority of local governments (224 out of 243, 92.2%) were confirmed to have promoted livelihood stability by implementing non-tax revenue reductions such as water and sewage usage fees and various fees, deferral of arrears disposition, and extension of payment deadlines to support payers facing difficulties due to disasters such as forest fire damage.

The Ministry of the Interior and Safety plans to continuously encourage local governments' interest by awarding institutional commendations and financial incentives to 26 local governments selected as the best and excellent organizations through the analysis and diagnosis of local tax non-revenue operation performance.

Furthermore, individual local government analysis tables will be provided to all 243 local governments nationwide and shared with all local governments to be used for self-diagnosis and improvement.

Choi Byung-kwan, Director of the Local Finance and Economy Office at the Ministry of the Interior and Safety, stated, “The scale of local tax non-revenue collection is about 34 trillion won, accounting for about 23% of local governments' own revenue, making it an important part of local finance. We will support and cooperate to stably secure autonomous revenue sources so that it can serve as a catalyst for regional economic vitality and livelihood stability.”

This content was produced with the assistance of AI translation services.