Local Revenues and Expenditures
In fiscal year 2004, there were four major sources of revenue for local governments: (i) Local own-source revenue (taxes, fees, charges, permits, fines, and etc.) (10.78 percent), (ii) Local revenue collected by national agencies (VAT, excises, vehicle fees, land registration, and so forth) (33.07 percent), (iii) Shared taxes (18.25 percent), and (iv) Grants (37.90 percent).3 In addition local governments were allowed to generate revenues from other sources, such as returns on local properties and investments, bond issuance, and so forth. In total, all local government revenue was proportionately about 22.5 percent of the central government’s total revenue.