지방자치단체의 재정자주권과 그 제한 및 한계 - 예산의 편성 및 통제규율을 중심으로 -

The legal research on financial matters of the local government has mainly been focused on increasing local financing resources and allocating local affairs. In contrast, the research on the budget system and the relevant issues on it has hardly been conducted. Local governments have their authorities and rights of financing to hold account to maintaining annual revenue and expenditure. One of such authorities and rights of it is referred to as the budgetary process and budgetary preparation. As to this, the legal grounds on the rights and authorities of budgets of the local government are provided in the Article 117, paragraph 1 of the Constitution, and Chapter 7 of the Local Autonomy Act, and the Local Finance Act. Budget of the local government is established according to the standards of the budget formulation set as the orders by the Ministry of Public Administration and Security. It is so because the local financing system has something close to do with the national financing system. But the excessively minute budgeting guideline could infringe the authorities and rights of budgets managed by the local government. Budget is classified into budgetary general provisions, revenue, expenditure, continuing cost, act of bearing the liability, and authorized expenses to carry forward. Currently, the financial capacity of local governments depends on the central government by 41% on average. Because of this, the local government get the criticisms that they are not substantially guaranteed their autonomous right. The expenditure of the local government is spent by the standards of central government, as a whole. Budget is closely related to financial soundness. Given that the gross volumes of revenue and expenditure are determined by the budget bills, the larger volumes of expenditure than revenue contribute to the adding the burdens of financial deficit and liability. As for revenue, controlling is made on the sorts of local tax, and the definition of revenue rates and tax standards and tax exemption. As for tax exemption, the local tax exemption permit system is being implemented. But it needs to consider offering a discretionary right to adjust the targets and rates of tax exemption of the local government fit for the characteristics that each region has. The controls over expenditures are made according to the investment and loan review system and the ceiling system on supporting non-governmental body. As already mentioned, the controls over liability serve as a crucial factor in the local government' sustainable financing operation. Considering this fact, issuing bonds shall be approved by the Ministry of Administration and Security, and shall be decided by the local council. In 2011, the pre-alarm system against the local financial crisis was introduced. This system earmarks indicators and nominates and manages the financial crisis according to the five spheres: financing balance, liability⋅revenue⋅financial resource management and public corporations. In the process of operating the system, the local government have a limited participation and engagement. Thus it needs to extend the scope of setting indicators, and to extend an opportunity for the local government to engage in reviewing the system. Meanwhile, what matters in the process of controlling the local government' budget is the controls by the local council and local residents. In particular, local residents' participation budget system has been emerged as an important issue in recent years. This system has not yet been settled, but it is worth while to be evaluated positively in that this controls and regulates over the local government head and the local council through local residents' participation. In addition to these, it should be considered to set financial rules in the aspect of the local finance, and to maintain the financing transparency according to the given rules. Meanwhile, since the local public corporations are closely connected with the financial soundness of local government today, it is required to devise efficient supervision and management systems for public corporations, with the focus on the financial soundness.