Since inauguration of Japan’s new government in September, 2009, they carried out reforms for the budgeting process.
Japan’s administration has established ‘the Government Revitalization Unit’ to eliminate wasteful tax by in depth reexamination of the budget, and conducted an evaluation of the public projects, which is called “Scrutinization of the Public Proj-ects” categorizing them into Cancellations, Freezes, Cuts, etc. With regard to im-prove the transparency of the budgeting process, classification process of the public projects should be opened to the public, especially for releasing every process on the Internet.
Japan’s reformation and its limitations of the budget process taught some les-sons to Korea up to a point. nevertheless, due to the different political systems, it is difficult to apply Japan’s case into our situation, however this case study has found some implication as it follows.
First, when introducing estimate to the Special Committee on Budget and Ac-counts, the government should be enforced to include both total expenditure and spending limit for each of its central agency. Therefore, by allowing the National Assembly to judge whether the budget bill is appropriate or not before the decision is made on the government’s budget bill, the National Assembly’s will about the National Finance should be reflected on the bill.
Second, the government should institutionalize the early submission of the Na-tional Fiscal Management Plan (for example, 180 days prior to the commencement of the fiscal year), in order to make the National Assembly not only examine the plan and but also suggest its opinions. Lastly, the government should establish lucid criteria on the budget compiling process at eye-level of the taxpayers, and thor-oughly eliminate the causes of budget waste. While compiling up the budget, the government should examine feasibility and fiscal soundness of the projects, the necessity of the government funds injec-tion, and the effectiveness, efficiency and urgency of measures. The government also should build a system that reflects the real condition of the budget execution in the budgeting process.
Japan’s administration has established ‘the Government Revitalization Unit’ to eliminate wasteful tax by in depth reexamination of the budget, and conducted an evaluation of the public projects, which is called “Scrutinization of the Public Proj-ects” categorizing them into Cancellations, Freezes, Cuts, etc. With regard to im-prove the transparency of the budgeting process, classification process of the public projects should be opened to the public, especially for releasing every process on the Internet.
Japan’s reformation and its limitations of the budget process taught some les-sons to Korea up to a point. nevertheless, due to the different political systems, it is difficult to apply Japan’s case into our situation, however this case study has found some implication as it follows.
First, when introducing estimate to the Special Committee on Budget and Ac-counts, the government should be enforced to include both total expenditure and spending limit for each of its central agency. Therefore, by allowing the National Assembly to judge whether the budget bill is appropriate or not before the decision is made on the government’s budget bill, the National Assembly’s will about the National Finance should be reflected on the bill.
Second, the government should institutionalize the early submission of the Na-tional Fiscal Management Plan (for example, 180 days prior to the commencement of the fiscal year), in order to make the National Assembly not only examine the plan and but also suggest its opinions. Lastly, the government should establish lucid criteria on the budget compiling process at eye-level of the taxpayers, and thor-oughly eliminate the causes of budget waste. While compiling up the budget, the government should examine feasibility and fiscal soundness of the projects, the necessity of the government funds injec-tion, and the effectiveness, efficiency and urgency of measures. The government also should build a system that reflects the real condition of the budget execution in the budgeting process.