▪ Growing local budgets and expanded local powers require stronger checks on whether projects make fiscal sense before approval.

▪ The effectiveness of local finance investment appraisals that evaluate the feasibility of fiscal projects ex-ante must be verified.

▪ Local fiscal investment appraisal screens projects before they start, checking whether they are needed and sensible to ensure smart spending and avoid wasteful duplication.

▪Investment appraisals decide if projects should progress by ensuring they are needed/sensible, fit economic/social policies, connect with other government plans, and use resources efficiently.

▪ Both review numbers and target resource amounts have grown recently, with Si/Gun/Gu self-reviews now comprising over half the total.

▪ Review differs from other local fiscal evaluations by checking feasibility before projects start, enabling real spending control.

▪ Some cities abuse exemption rules.

▪ Unclear rules on what counts as “obligations” lead to missed appraisals.

▪ Disconnected project reviews and management hinder effective budget use.

▪ Create better ways to catch projects dodging or skipping appraisals

▪ Develop detailed guidance on what projects need appraisal

▪ Build foundations for efficient budgeting through connected project analysis