Analysis on 2018 Budget
With the view that finance needs to play a more active role in order to realize an economy of human-centered continued growth through income-led growth, job creation and innovative growth drivers, the government submitted to the National Assembly a budget proposal of 429.0 trillion Korean won in total expenditure, which is 28.4 trillion won (7.1%) higher than the previous year’s main budget.
In this budget deliberation which incorporates the new administration’s national policy agenda, there needs to be a serious and in-depth discussion on the desirable role of national finance, sourcing methods and the direction of area-specific financial allocation as well as fiscal soundness in addition to the feasibility and effectiveness of fiscal projects; in order to resolve current Korean issues such as low growth, polarization, low birth rates and the emergence of an aging society.
NABO published The 2018 Budget Plan Analysis Series to support the budget plan deliberation of the National Assembly. The 2018 Budget Plan Analysis Series is composed of Comprehensive Analysis, Analysis by Committee, Analysis on Public Institution Budget Plans, Analysis on Gender Sensitive Budgeting, and Overview of Budget Plan Analysis.
This report has the following characteristics:
First, in the Comprehensive Analysis, the major characteristics and overall finances of the budget plan are analyzed with expanded analysis of each category such as the government’s key policy initiatives including the reinforced health insurance coverage as well as the fiscal program on wage labor costs, thereby providing a macro and diverse perspective on the budget plans.
Second, the Analysis by Committee provides a summary of the budget plans according to each responsible ministry. It approaches the policies and programs led by each ministry from various levels such as by unit or specific program, providing a close-up analysis of the rationale behind the programs, appropriateness of budget size, whether a plan was developed in advance and whether the required procedures were observed, whether it is actionable and what the expected outcomes are.
Third, the Analysis on Public Institution Budget Plans covers the feasibility and appropriateness of government-funded programs for public institutions, thereby making an effort to expand the framework of budget plan analysis in an organic and comprehensive way.
Fourth, the Analysis on Gender Sensitive Budgeting reviews whether the fiscal programs are appropriately allocated and managed in terms of gender sensitivity, and provides suggestions for improvement.
The review was focused on 43 subjects for the comprehensive analysis and 743 subjects among 53 programs conducted by government ministries under the supervision of 15 standing committees. 204 subjects under 160 public institutions were analyzed, and 60 programs under 12 ministries were analyzed regarding the analysis on gender sensitive budgeting.
Particularly in the process of selecting the subjects and drafting the report, there were three rounds of internal deliberation and consultations with government ministries to strictly confirm the facts and receive inputs, in an effort to ensure objectivity and enhance the expertise of the report.