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The Analysis to Improve Efficiency on the Operational Budget of Local Council

The Analysis to Improve Efficiency on the Operational Budget of Local Council

Year2022

Author Lee Jang-wook

Original

Abstract

There has been complete revision of Local Autonomy Act in Korea 2018, enacted in January 2022, ever since it has been previously enacted in 1991. This complete revision has amended articles, which aim to enforce the autonomy of local legislatures as well as transparency and accountability of those institutions. This publication has been written to provide the fundemental analysis to improve the operational budget of local legislatures, especially focused on Gyeonggi province (so called Gyeonggi-do) in Korea, in accordance to recent complete revision of Local Autonomy Act. The analysis has been performed by adapting the case of local council office of Gyeonggi-do, with respect to classification of government expenses and statistical accounts in detail. And then it would intend to deliver the implications of the state of budget operation of local legislature of Korea as well as the current pending issues.
As a result, it has suggested that the operational budget of the local council, Gyeonggi-do, has been growing every year from 2018 to 2022. In 2022, the total budget size of the local council, Gyeonggi -do, is about 120 million dollar (US $) and is about 1% of that of the local government, Gyeonggi-do. There are pending issues derived from the analysis executed. First, about 70 percent of total operational budget would be account for institutional operation expenses. Second, the budget ratio of the local council legislative activities would be less than 15 percent of total operational budget. It would be resulted in the characteristics of local council institutional operation, in which the operational expenses include staff wage and other payments and so forth.

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