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Title Analysis of the Middle-Term Financial Requirement in Road Building Sector

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Social Overhead Capital(SOC) has been considerably expanded due to a drastic financial investment. Moreover, the rate of increase in financial investment has been tending downwards owing to an increase of fiscal demands in other sectors such as public welfare and national defense. Reflecting these tendencies, Roh’s administration announced that the rate of increase in financial investment on SOC would be adjusted to a proper level in the Government Fiscal Operation Plan. However, a controversial debate over the appropriateness of an investment scale of SOC continues and a problem of a delay caused by lack of funds is proposed as well even though now the Roh’s administration is not able to carry out a expanded financial investment on SOC under the Government Fiscal Operation Plan.

Since an in-depth study over the appropriateness of an investment scale of SOC is required, this report examines road building sector with efficiency based on performance indicators. Moreover, it analyzes the appropriate scale of financial investment reviewing precedent researches which have studied investment scale and resource distribution in road building sector.

Results of evaluation of the middle-term financial requirement in road building sector, mainly concerning with investment plan on road building from the Ministry of Construction and Transportation and the Government Fiscal Operation Plan, are as follows. On one hand, there is a little needs for increase in investment over road building in order to reduce traffic jam and distribution cost. Therefore, this report concludes the current investment scale of investment is appropriate. On the other hand, it is necessary to take measures to bring to completion current road building projects at a proper time as a budget for a national highway could be sharply reduced because of an increase in financial support for Private Highways.

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