'20.79% National Tax Linkage Abolition' Education Subsidy Reform Plan to Be Announced as Early as Next Week | Yonhap News

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'20.79% 내국세 연동 폐지' 교육교부금 개편안 이르면 내주 발표 | 연합뉴스
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The Ministry of Planning and Finance is expected to announce a plan to revise the system of grants provided by the central government to local education offices as early as next week. The current system automatically allocates 20.79% of national taxes as grants, but the Ministry of Planning and Finance has pointed out the problem of budget waste due to tax revenue increases despite a decrease in the number of students, and proposed abolishing this system and considering factors such as gross growth rate and changes in school-age population. On the other hand, the Ministry of Education argued for maintaining the national tax linkage system and proposed using excess funds as a 'future response fund' in case of large-scale tax revenue increases, which would be used for early childhood education, higher education, etc. An agreement between the two ministries has not yet been reached, and there is a possibility that an agreement will not be reached by the deadline for next year's budget compilation.

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