Basic Report

The biggest problem surrounding the government matching grants for social welfare isthat they are still operating the government matching grants for social welfare the way 25years before, even if social welfare policy go along the road in response to rapidly changingenvironment.Basically, childcare support program is changed from the residual social welfare serviceinto the universal social service which fights against the country’s low birth rate. In addition,the target and scale of basic old-age pension and basic livelihood security are expected toexpand significantly from 2014 and at the same time will be followed by rapid expansionof matching financial burden of local government, about which controversy has aleady begun.Thus, the current operational practices of government matching grants can not be kept anywayand another alternatives should be provided.First, this study suggests ways to improve objectivity in adjustment procedure whichguarantees fairness in standards supporting rate.Second, for practical operation of the review committee on Local Financial Burden thatmakes adjust resolution substantially the legislation on consultations between the central andlocal governments is worth considering as in the case of Japan. In the short term, it issuggested that the central and local governments make the partnership agreement which forcesto implement the proposed measures like the United Kingdom.Third, the differential Supporting rate is need to be applied according to the homogeneouslayer of the local government and the number of recipients that represent substantial demandshould be utilized.Fourth, in addition to continued monitoring on the integrated management of social welfarenetwork, planning and implementation of recruiting social welfare workforce should be carriedout, which can save the money for the social welfare expenditure.Fifth, in the long run the earmarked tax and new sources of tax revenue only for socialwelfare should be introduced.Finally, the discretion of the local government should be expanded in order to manageefficiently government matching grants for the social welfare sector and some social servicesexcepting public assistance projects can be run autonomously for efficiency.