This study reviews the issues facing the Korean government’s fiscal operations and the current state of government finance statistics, thereby suggesting mid-/long-term improvements.
The most important figures in government finance are the consolidated budget statistics. The Korea Consolidated Budget Balance, prepared and presented by the government according to standards set forth by the IMF, provides detailed data encompassing revenues, expenditures and net lending of the total government sector. Information on special accounts and funds should be provided as well. Drawing mid-/long-term fiscal projections from the data requires that expenditures be categorized as either mandatory or discretionary. The mandatory expenditure items include interest cost, pension benefits, subsidies and grants, with discretionary items covering the remainder. Fuller disclosure on pension funds is needed, in particular information on whether or not specific items are mandatory, and if the data will enable the calculation of the national burden ratio in relation to the funds. Securing internal congruence, consistency over time, and timeliness of the consolidated finance statistics data are critical.
The national debt is made up of loans, national bonds, and contracts resulting in treasury obligations. National bonds, which make up the biggest part of the national debt, when assessed should take into account more data, including the nature of the bond-holders and their maturity. The national debt specifies the interest cost of national bonds, but not those of loans, which should be included. Another problem of national debt statistics is that the consolidated budget balance is calculated differently from that of national debt figures. One is based on the IMF standard, while the other is prepared according to the standards stipulated in Korea’s Budget and Accounts Act.
National assets consist of state credits, state-owned properties, and items. National assets include a variety of categories, which makes it hard to evaluate and manage in a systematic way. An integrated approach to national assets is needed. National assets need to be managed according to a consistent standard and categorized by their maturities, as well as if they are financial or non-financial so that net financial assets and net assets can be calculated.
우리나라의 재정통계(Korea’s government finance statistics)
|Series Title; No||연구보고서|
|Subject Country||South Korea(Asia and Pacific)|
|Subject||Economy < Financial Policy|
|Holding||한국개발연구원; KDI 국제정책대학원|