Basic Report

  
  
    Currently available investment source of money of local government is calculated on the basis of calculation method by establishment ofmiddle-term local finance plan and government investment &loan review system. However, the calculation method is not enough real and systematic to express financial power of local government in reality.
   In the point of view as above, the study analyzed problems in calculation method of available investment source of money of the present local government and actual conditions of available investment source of money of the present local government. To improve the problems, the study developed a standard calculationmethod of available investment source of money and compared and analyzed actual conditions of available investment source of money of the present local government applying the standard calculation method of available investment source of money.
   Asthe result analyzing the calculation method of available investment source of money of the present local government the study discovered the following problems.
   First, it is disagreement of calculation method of available investment source of money and change of available source of money followed by difference in a point of view. Second, it is different standards to calculate available investment source of money. Third, the present calculation method of available investment source of money calculates available investment source of money of local government more excessive than financial power of local government in reality.
   Therefore, it is necessary to establish a new analysis model reflecting real financial power of local government since the present calculation method of available investment source of money doesn’t have enough explanation about financial conditions of local government in reality.
   As the result comparing available investment source of money of five local governments with the standard model proposed by the study, the study could know that available investment source of money by the standard model depended on rationality of financial application since local government with high financial power must not have high proportion of available investment source of money. Also, the study could know that a scale of available investment source of money was decisively caused by annual revenue and expenditure of the pertinent year since it changed every year.
    As above, the study improved problems in theexisting calculation method of available investment source of money and proposed a new standard model of available investment source of money to secure effectiveness in calculation of available investment source of money.
   First, reserve power in investment business of local government by the same standard can be grasped more distinctly by applying the united method by development of standard model to all local governments.
   Second, real financial power of local government can be grasped more distinctly through improvement in the calculation method of available investment source of money.
   Third, the calculation method of available investment source of money by the standard model can be utilized as an index of financial comparison among local governments, a standard of investment review and an index of finance analysis. Also, it has an expected effect to raise prediction and effectiveness in establishment of middle-term local finance plan.
   Fourth, the calculation method of available investment source of money by the standard model classifies annual revenue and necessary expenditure more distinctly. Therefore, the results of financial application and expansion factorsof available investment source of money in local government is classified more distinctly by the calculation method of available investment source of money by the standard model.