The government grants program is to transfer value to a recipients, such as non-profit entities, R&D institutions, business or an individual in order to meet special purpose of public support or stimulation based on authorization by the law.
24 ministries are carrying out or operating 701 government grants programs in the year of 2010. The size of government grants programs is estimated as 21,712.9 billion won, which amounts to 7.4 percent of total government expenditure.
Despite of huge amounts to be spent out, the government grants programs have not been deliberated thoroughly in the National Assembly. This is because if grants money is once paid to recipients with relatively high discretion on how to use the money, it is not easy to track down how grants programs work.
In this regard, this evaluation report is aimed at keeping its spotlight on two issues. The first one is to make clear the legislative conditions for the grants to be allowed. And the second one is find ways to secure financial transparency in the process of implementing grants programs.
It turned out that more than 40 percent of the total grants programs are not regulated by the National Finance Act, because its obscure provision does not pro-vide any coherent or concrete principles in terms of allowing grants. To address this problem, this report suggests that the National Finance Act needs a comprehensive amendment toward codifying the definition, condition, procedure of grants pro-gram, etc.
24 ministries are carrying out or operating 701 government grants programs in the year of 2010. The size of government grants programs is estimated as 21,712.9 billion won, which amounts to 7.4 percent of total government expenditure.
Despite of huge amounts to be spent out, the government grants programs have not been deliberated thoroughly in the National Assembly. This is because if grants money is once paid to recipients with relatively high discretion on how to use the money, it is not easy to track down how grants programs work.
In this regard, this evaluation report is aimed at keeping its spotlight on two issues. The first one is to make clear the legislative conditions for the grants to be allowed. And the second one is find ways to secure financial transparency in the process of implementing grants programs.
It turned out that more than 40 percent of the total grants programs are not regulated by the National Finance Act, because its obscure provision does not pro-vide any coherent or concrete principles in terms of allowing grants. To address this problem, this report suggests that the National Finance Act needs a comprehensive amendment toward codifying the definition, condition, procedure of grants pro-gram, etc.