Public Finance of Korea 2019(partially extracted)
The fiscal process is composed of the budgetary process and settlement of accounts process.
The budgetary process consists of 1) the formulation of the budget bill by the government 2) the deliberation and confirmation of the budget bill by the National Assembly and 3) execution by the government; while the settlement of accounts process consists of 1) the drafting of the Report on the Settlement of Accounts, 2) audit of the settlement of accounts by the Board of Audit and Inspection of Korea (BAI), and 3) the examination of the settlement of accounts by the National Assembly. Such fiscal process is also referred to as the “fiscal procedure.”
In principle, the Korean budget is valid for only one fiscal year (1 year) under the Principle of Independence of Fiscal Years, but the fiscal process is conducted over three fiscal years, covering the year before and after the subject fiscal year. The budget for 2019, for instance, is formulated and examined in 2018, executed in 2019 and settled in 2020. Government funds also undergo a process similar to the budgetary process according to the National Finance Act and the National Accounting Act, in terms of the development, confirmation and settlement of the draft Fund Management Plan.