○ Jeollabuk-do's welfare spending is mostly executed through national subsidy projects that are a component of the plans of the central government, severely constraining local authority. Subsidy projects comprised 89.85% of all welfare projects in 2022, with local projects making up only 9.41%, indicating that most welfare projects are implemented as national subsidy projects without the financial autonomy of local regions. With the recent increase in welfare demand, the welfare budget was increased, but the corresponding local expenses also rose considerably putting higher financial strain on local regions. For example, the social welfare subsidy project had a budget of 58.1 trillion won in 2020, of which 17.0 trillion (29.5%) went toward corresponding local expenses and 41.0 trillion (70.6%) went toward national subsidies. This share of national subsidies had dropped compared to 2019 but the percentage of corresponding local expenses had increased. In Jeollabuk-do, expenses of cities and provinces accounted for a significant percentage of welfare spending in 2022, accounting for 34.15% of all local independent revenue.

​○ ​Moreover, most national welfare subsidy budgets can only be increased due to low birth rates and aging, so the burden of local expenses according to an increase in relevant national subsidies is expected to increase in the future.

​○ ​It is also anticipated that prior revenue streams, such as shared tax and grants, will be cut as a result of a tax revenue shortfall in the upcoming year, creating significant challenges for municipal spending. To reduce the financial burden on Jeollabuk-do, where the demand for welfare is high due to aging but financial conditions are poor, the spending structure of welfare projects, which rely heavily on national subsidies, must be redesigned in accordance with the financial situation of the region.

​○ ​For this to be achieved, first, the rate of subsidies for welfare projects must take into consideration local financial conditions to reflect regional differences. Currently, only 18 social welfare projects adopt a differential rate of subsidies-6.5% of the total 274 projects. Therefore, there is a need to expand the application of differential subsidy rates to reduce the financial burden on local governments.

​○ ​Second, the current differential subsidy rate support system must be subdivided and improved to sufficiently reflect the financial differences of each region. The basic pension system, the greatest financial burden for Jeollabuk-do, should subdivide its differential subsidy standard, which is the standard for financially independent provinces, from the current minimum standard of less than 80% to 60%, including most local governments, and therefore expand the national subsidy standard.

​○ ​Third, the current national subsidy rate support system that was set under no particular principle must now be applied with consistent principles by comprehensively identifying the objectives and targets of welfare projects. In the current financial allotment system, the roles of the government and local governments must be subdivided based on equity, efficiency, and propriety, and welfare projects for universal problems that all regions are experiencing must be fully subsidized by the government. With such a financial distribution standard for national subsidy projects and the five major projects that are a financial burden under the responsibility of the government, it is estimated that tax revenue of a maximum of 240 billion won would be generated in the case of Jeollabuk-do.

​○ ​Fourth, to ease the rigidity of national subsidy projects, projects with similar objectives should be subject to comprehensive subsidies, strengthening the financial autonomy of local governments. To achieve this, institutional supplementation is required, where projects with related goals become comprehensive subsidy projects to enable the redirection of funds to a related project when a particular project's budget is still available.​