지방자치단체의 비효율적 재정 운용과 도덕적 해이

Abstract

Previous studies analyzing the causes and consequences of inefficient fiscal management have mainly focused on the politics of the budget process and fiscal prudence, often overlooking the relationship between inefficiency in budget execution and moral hazard, which represents inefficient fiscal management.
 This study aims to examine the relationship between inefficient fiscal management and moral hazard at the local government level, focusing on unused budget and local subsidies. It does so by collecting financial statements from local governments across the country spanning from 2017 to 2021. The increase in unused budget at the local government level can be attributed to the expansion of local governments' authority and fiscal size, which has not been met with corresponding efficient and responsible expenditure.
 Local subsidies have the positive aspect of leveraging private sector capabilities to improve business performance, but they also have a negative impact on local government integrity by leading to unproductive appropriation structures, such as unreasonable budgeting and the expansion of expenses.
 Budget wastage, including excessive unused budget and increased local subsidies, has been cited as a cause of corruption and moral hazard for many years. Therefore, for efficient resource allocation, it is essential to ensure rigor in budget formulation and budget deliberation, improve the financial expenditure structure during the budget execution stage, and maintain objectivity in the budget settlement stage.