NABO Fiscal Trends and Issues (2019 Vol. 4)
Published on December 16, 2019
Published by Social Budget Analysis Division of the Budget Analysis Department
I. Key Fiscal Indicators
The progress rates for total revenues and total expenditures up to October 2019 are 85.3% and 87.8% respectively. In addition, the consolidated central government balance (in the form of an 11.4 trillion won deficit) increased by 40.0 trillion won, YoY, and central government debts (698.6 trillion won) increased by 46.8 trillion won, due to reasons such as increased reserves of foreign exchange stabilization bonds (44.3 trillion won) and national housing bonds (2.7 trillion won).
Ⅱ. Major Fiscal Issues
Areas selected as major financial issues in the second half of 2019 include 1) the results of the National Assembly's deliberation on the budget for the past five years; 2) plans to improve the R&D pre-feasibility study system; 3) building big data platforms and centers; 4) three innovation strategies for the contents industry; 5) comprehensive fine dust management plans; 6) measures to abolish the high school ranking system and improve the education capacity of general high schools; 7) countermeasures to address changes in the demographic structure; 8) issues of negotiations on defense cost sharing between Korea and the United States; 9) recent fiscal settlement trends of local education finances over the past five years. The main contents surrounding these issues are introduced by centering on related fiscal matters and future tasks, plus issues of securing financial resources to address them.
Ⅲ. Overseas Fiscal Trends
The status of aging, health policy-related initiatives, and the expenditure scale of OECD countries based on the contents of financial reports published by major international financial institutions, such as “Working Better with Ages,” and “2019 Health at a Glance,” are introduced by comparing them with the present situation in Korea.