anis 2012-special session_junsik bae
TRANSCRIPT
Budget of Seoul City and the Necessity of Innovation
in Public Service
2012.6.13
Seoul Development Institute (Jun Sik Bae)
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Contents
1. Fiscal Status of Seoul Metropolitan City
2. Essentials for Public Services Innovation
3. Case Studies in Public Budgeting and
Public Services
2
1. Fiscal Status of Seoul Metropolitan City
3
Seoul Metropolitan Government
Population: 10,520,000
(1) The Budget of Seoul Metropolitan City
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Source : Seoul Metropolitan Statistics(2012)
Units(%) = Ratio of Total Budget
Operating Cost 6 %
supporting Fund
35%
Debt Redemption
3%
Program Cost
54.3%
Reserve Fund
2%
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Share of Seoul City in National Budget
Source : Seoul Metropolitan Statistics(1999-2012)
Units : Million Won, %
7.5% 7.8%
8.4% 7.7%
8.8% 9.4%
8.7% 7.3%
8.2%
8.1%
8.4% 7.4% 7.0%
-
50,000,000
100,000,000
150,000,000
200,000,000
250,000,000
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Seoul City's Budget National Budget
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Structure of Budget Spending in Seoul Metropolitan City
Source : Seoul Metropolitan Statistics(2008-2010)
Units(%) = Ratio of Total Expenditure
0%
5%
10%
15%
20%
25%
30%
Administrative Public Safety Walfare Education Environment Culture Development
2008 2009 2010
(2) Tax Revenue of Seoul Metropolitan City
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Annual Tax Revenue
Source : Seoul Metropolitan Statistics, General Accounting (1996-2012)
Units : Million Won,%
-100%
-80%
-60%
-40%
-20%
0%
20%
40%
-
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
14,000,000
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Tax Revenue Growth Rate
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Annual Gab between Budget and Real Revenue in Seoul
Source : Seoul Metropolitan Statistics(1996-2012)
Units : Million Won
0
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Budget RealTax Revenue
Annual Fiscal Gratification of Seoul
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Fiscal Gratification(%)=Standard Fiscal Revenue /Standard Fiscal Demand Source : Seoul Metropolitan Statistics(2000-2012)
60 65 62 60
66 65 61 58
77 79 72 70 67
6.4% 8.7%
-4.3% -4.2%
9.9%
-0.6% -6.3%
-4.9%
31.7%
3.5%
-9.2% -3.1%
-4.4%
-100%
-80%
-60%
-40%
-20%
0%
20%
40%
0
20
40
60
80
100
120
140
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Fiscal Gratification Growth Rate
(3) Debts of Seoul Metropolitan City
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Annual Debts
Source : Seoul Metropolitan Statistics (2000-2012)
Units : Million Won,%
2%
-11% -33%
-4%
-6%
13% 19%
36%
75%
18%
-140%
-90%
-40%
10%
60%
110%
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
4,000,000
4,500,000
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Debts Growth Rate
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Annual Financial Independent Rate
95% 95% 95% 95%
95%
93%
89%
86%
90%
83%
89% 89%
75%
80%
85%
90%
95%
100%
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Financial Independent Rate = (Ordinary tax + Objective tax- Debts) / Total revenue Source : Seoul Metropolitan Statistics(2001-2012)
(4) Welfare and Budget of Seoul City
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Annual Growth Rate of Welfare Budget in Seoul
Source : Seoul Metropolitan Statistics (2004-2012)
Units : Million Won, %
-0.4%
20.8%
12.8%
18.3%
33.6% 31.3%
-8.8%
7.3% 9.0%
-15%
-10%
-5%
0%
5%
10%
15%
20%
25%
30%
35%
40%
0
10,000,000
20,000,000
30,000,000
40,000,000
50,000,000
60,000,000
2004 2005 2006 2007 2008 2009 2010 2011 2012
Walfare Budget Growth Rate
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Annual Welfare Investment of Seoul
Source : Seoul Metropolitan Statistics (2012)
Units (%) = Million Won
4,702,265
5,238,599
5,923,746 6,198,364
7,225,797
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
2011 2012 2013 2014 2015
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Tax Revenue vs Welfare Budget
8.0%
4.6%
-7.0%
22.8%
10.6%
13.6%
-10.2%
-0.5%
3.3% -0.4%
20.8%
12.8%
18.3%
33.6%
31.3%
-8.8%
7.3% 9.0%
-15%
-10%
-5%
0%
5%
10%
15%
20%
25%
30%
35%
40%
2004 2005 2006 2007 2008 2009 2010 2011 2012
Growth Rate of Tax Revenue Growth Rate of Welfare Budget
Source : Seoul Metropolitan Statistics (2004-2012)
Units (%) = Growth Rate
2. Essentials for Public Services Innovation
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What is Necessary?
Fiscal
Decentralization
Motivation Doing
Together
Financial
Soundness
(1) Financial Soundness
Financial soundness is one of important facing
problems for innovation of pubic services
Requisites for financial soundness
Introduce the fiscal rule
Maximize cost-effectiveness
Prevent reverse spillover effect
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(2) Fiscal Decentralization
Reform the decentralization system for 25 autonomous districts in Seoul Metro City
Give greater financial autonomy to 25 districts
Reform tax system between Seoul Metropolitan Government and 25 districts in Seoul
Alleviate financial inequality among 25 districts
Change paradigm of decentralization
☞ Improve fiscal monopolism by upper level government
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(3) Doing Together
Encourage community involvement
Promote private organizations to participate
in public services
CSR(Corporate Social Responsibility)
☞ Provide advantages for CSR in public procurement
Invigorate local communities
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(4) Motivation
Compensate districts for the efforts for
public services innovation
Improve the incentives of Arbitration Subsidy
Program
Present 3 measures for subsidy incentives
☞ Financial Stability, Soundness & Efficiency
Add public services innovation as a measure
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3. Case Studies : Public Service Innovation
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Seoul Public Investment Service
Ondol-Welfare Project
(1) Seoul Public Investment Service
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Seoul Public Investment
Service was established
by Seoul Metropolitan
Government in 2012
Analysis of project feasibility in public investment project
Support private investment projects
Study and education for public officers
(2) Ondol-Welfare Project in Seoul
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Ondol-welfare project refers to share hopes
with the local communities
Develop local network
Construct social safety net
Welfare plan with community map and on-line
Thank you
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