Act Governing the Allocation of Government Revenues and Expenditures Article 37

The division of expenditures at various levels of government is as follows:1. Expenditures arising from legislation enacted and administered by the central government are the responsibility of the central government.2. Expenditures arising from legislation enacted and administered by special municipalities are the responsibility of the special municipalities.3. Expenditures arising from legislation enacted and administered by counties and county-level cities are the responsibility of the counties and county-level cities.4. Expenditures arising from legislation enacted and administered by townships/cities are the responsibility of the townships/cities.If the matters under Subparagraphs 1 and 3 of the preceding paragraph must be administered by a lower-level government, then except as otherwise provided by law, the expenses of administration for the commissioned matters shall be borne by the commissioning agency; for self-government matters, expenses shall be borne by the given local government.When the above matters are administered jointly by two or more governments at the same or at different levels, whether the central government or the governments of special municipalities, counties or county-level cities, or townships/cities, a proportional share of the cost of administration shall be borne respectively by the central government or by each respective special municipality, county or county-level city, or township/city.When a local government at any level fails to bear expenses as required by Paragraphs 2 and 3 above, its superior government may deduct those expenses from the subsidies it provides to the local government.