FY2018 Settlement of Accounts Analysis Series
Published on August 2019
Published by Budget Analysis Department
According to the FY2018 settlement of accounts submitted by the government, total revenues reached 465.3 trillion won and total expenditures 434.1 trillion won, while the balance of consolidated public sector finance recorded a surplus of 31.2 trillion won while the operating fiscal balance hit a 10.6 trillion won deficit, having improved by 7.1 trillion won and 7.9 trillion won, YoY, respectively. However, global economic uncertainty is increasing as the US-China trade dispute persists, coupled with downside economic risks following Japanese export controls, highlighting the economic adjustment function of finance in response. Accordingly, it is high time for in-depth discussions on the appropriate direction of national financial management as well as fiscal efficiency and soundness.
NABO published FY2018 Settlement of Accounts Analysis Series in order to support the National Assembly’s examination process of the settlement of accounts. The series is composed of the General Analysis, Committee-Specific Analysis, Analysis of the Settlement of Accounts of Public Institutions, Analysis of Government Measures on the Correction Requests made by the National Assembly on FY2017 Settlement of Accounts and Gender-Responsive Balance Sheet Analysis.
General Analysis contains a macro-analysis of nine general cases of fiscal issues including those related to fiscal soundness and projects with increased budgets procured via supplementary budgets, while conducting an in-depth examination of 34 carefully selected major fiscal policies including the renewable energy support project, four major public pensions, the new job creation project and the project addressing fine dust pollutants.
The Committee-Specific Analysis mainly discusses problems identified in the execution of individual projects by responsible Ministries and measures for improvement; while the Analysis of the Settlement of Accounts of Public Institutions examines the fiscal soundness and execution outcomes of public institutions. Furthermore, an Analysis of Government Measures on the Correction Requests made by the National Assembly on FY2017 Settlement of Accounts has been included to enhance the effectiveness of the National Assembly’s settlement of accounts examination, while the Gender-Responsive Balance Sheet Analysis examines the effectiveness and direction of institutional improvements of gender-responsive balance sheets through an analysis of balance sheets in relation to the Performance Plan.