The government said it will raise the national tax–local government tax ratio, now at "7.5 to 2.5," to "7 to 3."
Minister of the Office for Government Policy Coordination Yoon Chang-ryeol held the first meeting of the pan-government fiscal decentralization task force (TF) on the 16th and said, "In the Lee Jae-myung administration, we are working to raise the national tax–local government tax ratio to the level of 7 to 3."
He added, "As a result of the government discussing fiscal decentralization in phases one and two, the national tax and local government tax ratio changed from '78 to 22' in 2018 to '75 to 25' in 2023."
Deputy Minister Yoon said, "President Lee is emphasizing that local autonomy and fiscal decentralization must go together," and added, "We are trying to draw up a plan within the first half of this year."
He continued, "Among the incentives for integrated local governments that Prime Minister Kim Min-seok released today, what is important are the fiscal matters," and said, "It seems we need to work on creating a broad framework called local government finance decentralization and an integration plan by listening to opinions from inside the government and outside experts."
The TF consists of 12 members: Director General Yoon as head; five government members at the Deputy Minister level from related ministries and agencies, including the Office for Government Policy Coordination, the Ministry of Finance and Economy, the Ministry of Planning and Budget, the Ministry of the Interior and Safety, and the Ministry of Education; and six civilian members from academia and research institutions.
The Office for Government Policy Coordination plans to hold meetings at least once a month going forward and, through inter-ministerial consultation and coordination, prepare detailed plans for fiscal decentralization.