The Korea Local Administration Review

There are two influence ways on local finance in the ear of aging society. Firstly, due to the constant socio-economical downturn and low growth in the region, just like how the aging society influence nationwide, the local revenue-base becomes fragile. Second way, focused on my paper, is related to the change of the local expenditure sector according to the expansion of the center governmental welfare policies. It especially varies on the form of the social welfare regime and the intergovernmental welfare fiscal relationship. Nowadays, regardless of the new social risks on low birthrate-aging society and social pressure for fiscal spending expansion, the welfare expenditure burden of the local finance is not relatively large because the central government’s response to the demand of the aging society welfare is passive. In this paper, I analyzed how the expansion of the aging society policies would influence the local finance under the central government-based social policy system and intergovernmental welfare fiscal relationship. Moreover, I suggested several local fiscal policy agenda for overcoming the new social risks in the aging society, based on aging society sensitive perspective.   □ Keywords: Low Birthrate, Aging Society, Local Finance, Social Investment, Aging Budgeting, Intergovernmental Fiscal Relationship