CRI

 [ABSTRACT]

The relationship between fiscal expenditure and economic growth in the fields of finance and political economics has been studied for a long time based on two theoretical approaches. This is an approach to increasing fiscal expenditure as a policy tool for economic growth and an approach that sees tax revenue as an increase in national income according to economic growth, thereby increasing fiscal expenditure.

This study attempted to examine which factors among exogenous variables related to economic growth affect fiscal expenditure based on Wagner's law that an increase in national income drives tax revenue according to economic growth, and to predict how local tax revenues fluctuate according to future regional economic fluctuations in Chungcheongbuk-do.

Local taxes related to local tax (acquisition tax, registration and license tax, local consumption tax, local resource facility tax) were analyzed to be affected by local economic factors, and local grant tax, which is dependent income, was analyzed to be negatively affected by manufacturing production.

The results of this analysis show that revitalizing the local economy is an important task to be preceded in order to improve local tax revenues, and it is necessary to develop and utilize appropriate policy measures by local governments.