▲ Public Debate on Education Grant Reform
The Ministry of Planning and Budget and the Ministry of Education have revealed a clear difference in their positions regarding the system that links local education grants to internal tax revenue.
The two ministries held a public debate this morning (July 8) on the topic of reforming education grants for future generations.
This debate was an unusual inter-ministerial discussion arranged at the suggestion of President Lee Jae-myung.
Minister of Planning and Budget Park Hong-keun emphasized the need for comprehensive and balanced investment, citing the decline in the school-age population, the need to strengthen AI education, and the requirement for support ranging from early childhood to higher and lifelong education.
Minister Park stated that there have been many instances where annual grants fluctuated sharply, undermining fiscal stability. He added that it is time to review whether the current system, which automatically allocates 20.79% of internal tax revenue, is sustainable.
On the other hand, Minister of Education Choi Kyo-jin expressed deep concern over the reform of the internal tax linkage system, even while agreeing on the need for a rational restructuring of fiscal systems.
Minister Choi pointed out that it is highly concerning that a one-sided economic logic, which suggests that budgets should be cut simply because the number of children has decreased, is being pursued with a focus on numerical efficiency.
Education grants account for approximately 70% of the revenue for local offices of education and are used for the finances of elementary, middle, and high schools, as well as some kindergartens.
This year, education grants are expected to exceed 80 trillion won due to surplus tax revenue resulting from the semiconductor boom.
(Photo: Capture from Ministry of Education YouTube, Yonhap News)
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