NABO Fiscal Trends & Issues (Vol. 1, 2020)
Published on March 30, 2020
Published by Social Budget Analysis Division, Budget Analysis Department
I. Key Fiscal Indices
By November 2019, the progress rate of total revenue and total expenditure was 91.4% and 93.2%, respectively. In addition, by November 2019, the Consolidated Fiscal Balance (deficit of 7.9 trillion won) increased by 45.3 trillion won in deficit YOY, and the central government's debt (704.5 trillion won) increased by 52.8 trillion won compared to the account settlement in 2018, due mainly to the increasing treasury bond balance (50.1 trillion won).
Ⅱ. Key Fiscal Issues
NABO selected the following as key fiscal issues for the first quarter of 2020: “Key contents of the 2020 budget,” “Review result of the First Installment of a Supplementary Budget Bill for 2020,” “Results of budget revenue and expenditure closing for the fiscal year 2019,” “Establishing early budget execution plans for 2020,” “Innovative growth of SMEs and venture companies in the field of BIG3,” “Venture fund formulation plans for 2020,” “Announcement of bio industry innovation policy directions and key initiatives,” “Review of the COVID-19 outbreak, spread and related responses and countermeasures,” “Announcement of the 4th phase Basic Plans for Brain Korea 21 Project,” “An announcement by the Presidential Committee on Autonomy and Decentralization of ‘Decentralization Plans for 2020’,” “Investor-State Dispute Settlement (ISDS) trends and current status,” etc, and discussed major contents of mostly fiscal matters, and suggested future initiatives and implications.
Ⅲ. Pending Fiscal Issues for 2020 by Committee
In this section, NABO briefly introduced fiscal issues for each standing committee of the National Assembly. Specifically, they include the improvement and operation of alternative service facilities (Legislation and Judiciary Committee), the resumption of the supply of College Student and Sunshine Loans (Strategy and Finance Committee), the expansion of the University Innovation Support Project (Education Committee), the reorganization of the military structure (National Defense Committee), the increased support budget in line with the expanded number of Local Gift Certificates to be issued (Public Administration and Security Committee), an increase in Basic Pension benefits (Health and Welfare Committee), and the introduction of the National Employment Support System (Environment and Labor Committee).
Ⅳ. Overseas Fiscal Trends
NABO introduced major fiscal issues in major countries, including the “US: Submission of the budget bill for 2021 to the US Congress,” “Japan: Submission of the budget bill for 2020 to the National Diet,” and the “EU: Announcement of the European Green Deal Investment Plan (EGDIP).”