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재정건전화를 위한 국가채무 관리방안(Government debt and its management)

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  • 재정건전화를 위한 국가채무 관리방안(Government debt and its management)
  • Park, Hyung-soo; Park. Ki-baeg박형수; 박기백
  • Korea Institute of Public Finance


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Title 재정건전화를 위한 국가채무 관리방안(Government debt and its management)
Similar Titles
Material Type Reports
Author(English)

Park, Hyung-soo; Park. Ki-baeg

Author(Korean)

박형수; 박기백

Publisher

Seoul:Korea Institute of Public Finance

Date 2003-12
Series Title; No 정책보고서 / 03-04
ISBN 89-8191-249-1
Pages 189
Subject Country South Korea(Asia and Pacific)
Language Korean
File Type Link
Holding Korea Institute of Public Finance

Abstract

Since 1997 Economic Crisis, the size of public debt in Korea has
risen substantially. There have also been several debates on the size
and coverage of public debt. And the empirical tests on fiscal
stability conducted in this paper do not provide definite answers.
The concept, scope, and classification of government debt should
be clarified to settle the dispute regarding the true size of the debt
and tomanage the debt effectively. For this purpose, 1) the
confirmed financial liabilities of the government to the rest of the
economy and the world are the appropriate concept. 2) The scope of
the general government should be determined by institution as in
IMF and OECD guidelines. However, adjustments of the current
consolidated budget to match with the international standard as
much as possible is recommended for the time being since it takes
time to convert the basis from the account-based consolidated budget
to the institution-based. 3) The debt statistics should be classified
and reported by definite debts, potential debts, and other debts: Only
the definite (confirmed) debt should be used as the official debt
statistics. Government guarantees and the debts of public enterprises
should be included in the potential debt category. Other statistics
such as the debts of the National pension fund and financial public enterprises should be submitted in the appendix of debt statistics.
To maintain the fiscal soundness, it becomes very important to
establish a very effective management system of public debt. This
paper reviews the current system of public debt management in
Korea. It also compares that with IMF/World Bank's guidelines and
those in some advanced countries such as Australia, the United
Kingdom, France, the United States.
Base on the finding that the current system is not enough to cope
with the rising public debt, this paper provides some suggestions for
new management system. It is the most urgent policy agenda to
establish a legal framework and organizational structure. This paper
proposes a special law for public debt management and a
Pan-government board for public debt management. To achieve the
policy goal, ensuring analytical capability and risk management is
also needed.