Basic Report

This study is to suggest the improvement plans to budget classification system of social welfare in local government using review and analysis of social welfare expenditure budget. Since 1970s, budget classification system in local government have changed accordance with changes in social, economic, and administrative environment. However, current budget classification system does not reflect revenue and expenditure plans of local government. In hence, local government budget does not play a role of fiscal report. It is because that local budget classification system adapts directly budget classification system of central government.This study targets to socal welfare budget. In special, In the case of social welfare, central government budget includes lower incomer, woman, family, juvenile, labor, senior citizens, veterans, and housing. Also, local government budget adapts classification system of central government. In doing so, local residents do not understand the specific direction, priority, and current status about social welfare in each local government using social welfare budget classification system. Therefore, current social welfare classification system of local government has following shortcomings. First, current classification system does not provide with consistent statistical data regarding to socal welfare policy area because classification standard differ from each local government. Second, local governments have difficulty in managing social welfare policies due to budget formulation without consistency of each local government under performance budget system. In the past, budget formulation in local governments has consistent standard in accordance with line-item budget system. In current, however, each program is to be structuralized without consistency under policy area. This causes difficulties in producing several statistical data.Third, budget classification system does not respond changing financial environment in the local level. For instance, nonetheless law regarding female’s right was revised in 2014 this change have not responded to local government’s budget. Thus, although there is functional difference in terms of core policy between central government and local government budget classification system of local governments adapts directly to central government. In hence, local budget does not reflect core policies of each local government. Currently, in the case of job creation project, the project for senior citizen do not distinguish from youth and woman. Therefore, this study is to re-structuralize local budget classification system using re-alignment of policy program levels. In doing so, local governments could structuralize policy programs which lie around other policy areas and utilize local budget as basic data for post direction of local policy. In addition, re-alignment of policy programs helps to reduce costs for analysis of demands regarding to local sharing taxes. Therefore, this study is to make following suggestions to improve local budget classification system regarding social welfare policy. First, this study suggests improvement of realignment to policy program levels with respect to social welfare policy area. Thus, this study suggests realignment of policy program levels under retaining policy area or field of social welfare policy. Second, this study suggests that local budget classification system squares policy program of local governments with policy programs of central government. For doing so, local governments might adapt policy program classification system of central government to their own policy programs with considering each local characteristic.