지방재정 운영에 대한 국고보조금제도의 개선방향

National grant is one of major fiscal resources of Korean local governments. The functions of national grant to local governments are getting more important in the pursue of fiscal decentralization than before. This paper presents the improvement on Korean national grant system in fiscal decentralization. In current regime, Korean government tries balanced regional development by decentralizing those which fiscal functions of its local governments by fiscal decentralization. The objective of fiscal decentralization here is to implement the fiscal autonomic system in local governments and also to improve its responsibility undergoing local fiscal system. Theoretically speaking, national grant is the appropriate source of revenue for local governments to finance local welfare or SOC projects. Because own revenue source is limited to keep up with increasing in the demand of the social welfare and infrastructure in local government administration, central government can subsidy local governments to finance increasing demand for local welfare and SOC projects. However, increasing national grant in sources of local revenue can devastate the local finance due to the burden of the increasing the matching copayment for the projects. In this paper, we find out the improvement for the national grant system as well as reason out the administration policy for local governments to ensure the fiscal autonomy and their responsibility with respect to the fiscal autonomic system of local governments. In this paper, first, we use identify the definition and functions of national grant. Second, we deliver the operation statement of national grant system of recent years.