The Scorekeeping of Bills Approved in 2023

Published on June 5, 2024
Published by Estimates & Tax Coordination Division

   The scorekeeping of bills aims to understand the fiscal impact of new legislation by predicting changes in the central or local governments' revenues and expenditures over the next five years resulting from the enforcement of bills passed by the National Assembly. In 2023, 185 bills with 445 budget justifications were examined out of 281 budget-related bills passed by the National Assembly, excluding those for which fiscal impacts could not be estimated due to a lack of enforcement details.
   According to the analysis, it is estimated that the bills passed in 2023 will result in an annual average decrease of KRW 2.196 trillion in revenues and an increase of KRW 911.5 billion in expenditures from 2024 to 2028, assuming no extension of the current validity periods. In terms of revenues, the decrease in revenues from the extension of tax expenditure application periods is expected to offset the increase from the extended validity period of the special rural development tax; and a significant portion of the revenue impact is attributed to amendments to local taxes and enhanced tax support for childbirth and childcare, investments in advanced technology, and micro businesses. In terms of expenditures, a significant portion of the impact is due to the extension of the validity period of government support for National Health Insurance, expansion of social overhead capital, such as new airport construction and road maintenance, and enhanced support for infants and children, such as programs for newborns and children with disabilities, and mandatory vaccinations.
   The results of this examination provide meaningful insights for the country's fiscal management by analyzing the fiscal impact of legislation in a new fiscal environment. However, It should be noted that there are limitations to these estimates due to uncertainties in fiscal needs.