NABO Fiscal Trends and Issues (2019 Vol. 2)
Published on 27 May 2019
Published by Social Budget Analysis Division of the Budget Analysis Department
I. Key Fiscal Indicators
The progress rates of total revenue and total expenditure up to March 2019 are 25.4% and 29.5%, respectively. In addition, the consolidated central government balance (in the form of a 17.3 trillion won deficit) recorded a deficit increase of 15.6 trillion won YoY up to March 2019, and central government debt (670.3 trillion won) increased by 18.5 trillion won since the 2018 settlement of accounts, due to reasons such as increased reserves of housing bonds (1.7 trillion won) and decreased reserves of treasury bonds (17 trillion won).
Ⅱ. Major Fiscal Issues
The major fiscal issues mentioned in the first quarter of 2019 include the submission of the first supplementary budget estimation plan for 2019 to the National Assembly, ‘staged implementation of tuition-free high school education’, ‘action plans for lifestyle SOCs’, ‘evaluation results of employment programs and suggested improvements’, ‘the trend surrounding the status transition of firefighters from regional to national civil servant’, ‘report on the implementation status of innovative growth drivers’, ‘establishment of comprehensive plans for national health insurance’, ‘consolidated fiscal volume of local governments in 2019’ and ‘settlement of fiscal accounts of public institutions in FY2018.’ The main details were introduced with a focus on fiscal-related issues, along with associated tasks required for moving forward and matters related to securing financing.
Ⅲ. Fiscal Trends Overseas
An introduction is made on the content of fiscal-related reports published by major international fiscal institutions such as ‘a comparison of OECD Expenditure on Research and Development among major countries’, ‘a publication on the OECD New Job Strategy’ and ‘the development and forecasts of the European Union’s fiscal supervisory system’; as well as the recent trends surrounding changing foreign fiscal systems.