▪ Fiscal operations—which involve raising and spending resources necessary for implementing national policies—significantly impact citizens’ basic rights. Thus, modern democratic states require parliamentary approval for important fiscal matters through the people’s representative institution.

▪ While the national fiscal scale has increased significantly, parliament’s authority to supervise and check government fiscal activities has not changed since the founding Constitution of 1948.

▪ The National Assembly Constitutional Amendment Advisory Committee (hereinafter “Advisory Committee”), in operation since 2008, has discussed the following fiscal-related constitutional amendments to enhance budget transparency and accountability while realizing fiscal democracy: ① establishment of fiscal chapter and rules, ② introduction of budget legalism, ③ adjustment of executive’s budget increase consent authority. The following examines related key issues.

▪ The Constitution regulates budget and taxation as one procedure in “Chapter 3: The National Assembly” and does not stipulate matters concerning funds and settlement. Given the pivotal role fiscal matters play in national functions, the establishment of an independent chapter has been discussed, as constitutional provisions for funds and settlement must be prepared.

▪ In particular, whether to constitutionally codify specific targets for aggregate fiscal indicators—including fiscal expenditure growth rates, fiscal balance, and national debt—as fiscal rules within the new fiscal chapter is debated.

▪ Korea has adopted budget non-legalism since 1948, treating budget as distinct from law, but the need to introduce budget legalism to strengthen fiscal accountability has been discussed.

▪ During Advisory Committee discussions, members agreed that budget legalism needs to be introduced and budget formulation authority should be granted to the government but disagreed on whether to place budget bill submission authority with the National Assembly or the government.

▪ Article 57 of the Constitution stipulates that “the National Assembly cannot increase the amount of each item in the budget or establish new budget items without government consent.” Strengthening the National Assembly’s budget review authority by recognizing the National Assembly’s amendment rights within the total budget amount has been discussed.

▪ Fiscal constitutional amendment discussions involve adjusting power relations between the executive and legislative regarding fiscal authority, representing institutional improvements to secure mutual checks and balances between the government, which performs efficient fiscal operation as the main fiscal executor, and the National Assembly, which controls it as the people’s representative.

▪ Additional discussions on strengthening the National Assembly’s budget deliberation authority are required to realize fiscal democracy by the National Assembly as the people's representative institution and enhance the effectiveness of controlling government fiscal operations.