Initiative: Tax Administration Division
Problem: Since the global economic crisis in 2008, the increase in social welfare spending has put pressure on finances of national and local governments. The seriousness of the local fiscal crisis caused by various irregularities of public officials and the poor financial management of the heads of local governments came to highlight the importance of integrity and transparency of local fiscal management.
Solution: The Chungcheongnam-do provincial government has strengthened the disclosure of budget status, revenues and expenditure, and payment settlement on the website. In the case of revenues and expenditures, a fiscal information disclosure system was established and 15 primary local governments in the province were connected for the first time. Every detail of the annual revenue as well as expenditure status was disclosed. Concerning the expenditure, all contract methods, contents, and parties were disclosed. As a result, citizens can check the budget execution status online.
Impact: Fiscal surveillance has expanded, and transparency and efficiency of fiscal spending have been maximized. The National Finance Law was amended in December 2014. Subsequently, in May 2015, the Local Finance Act was amended, and from November 2015, all local governments are mandated to disclose daily revenues and expenditures through the Internet.