NABO Fiscal Trends &Issues (Vol. 1, Issue. 16, 2021)
Published on 31 March 2021
Published by Social Budget Analysis Division, Budget Analysis Department
I. Key Fiscal Indicators
The progress rates of total revenue and total expenditure from January to November 2020 are 93.0% and 90.3%, respectively. In addition, the consolidated central government balance (in the form of a 63.3 trillion won deficit) recorded a deficit increase of 55.4 trillion won YoY up to November 2021, and as of end-November 2020, central government debt (826.2 trillion won) increased by 127.3 trillion won since the FY2019 settlement of accounts, mainly due to reasons such as increased reserves of treasury bonds (123.4 trillion won).
Ⅱ. Major Fiscal Trends
The following were selected as the major fiscal trends in the first quarter of 2021, highlighting the fiscal-related issues under each subject: Overview of the 2021 Budget, Result of the National Assembly Examination of the First Supplementary Budget in 2021, Introduction to the OECD’s Recent Economic Forecast, Publication of the 2021 Digital New Deal Action Plan, Announcement of the 2021 Digital Content Industry Development Support Plan, 2021 Publication of Measures to Supply and Spur Innovation in Zero Emission Vehicles, Publication of the Republic of Korea’s 2050 Carbon Neutral Strategy, Conclusion of the 11th Special Measures Agreement on Splitting the Defense Costs between Korea and the US, Disclosure of the Local Government National Subsidy Program Grant and Execution Records of 2020 (FY2019), The Government‘s Establishment of the 4th General Plan for Low Birth Rates and Aged Society, Status of the Designation of Public Institutions in 2021, US Approves $1.9 trillion Stimulus Bill to Tackle COVID-19.
Ⅲ. Major Fiscal Issues
As the major fiscal issues in the 1st quarter of 2021, the publication of Public Sector-Led Measures to Increase Housing Supply in Metropolitan Areas for 3080+ and the Announcement of the COVID-19 Vaccination Scheme and Subsequent Implementation were highlighted, providing an overview mainly regarding fiscal matters and legislation.
Ⅳ. Committee-Specific Major Fiscal Issues in 2021
In the Committee-Specific Major Fiscal Issues in 2021, a brief overview is provided on the fiscal status of the 2021 budgets in each of the standing committees of the National Assembly. Specific issues include financial support in response to COVID-19 (National Policy Committee), Green Smart School development program (Education Committee), R&D programs related to science technology and ICT (Science, ICT, Broadcasting and Communications Committee) as well as Project Hope (Public Administration and Security Committee).