Analysis on Estimated Costs of the Budget-related Bills

  • 2008-11-17
  • 344

  Consideration of a budget related bill, which is imposing fiscal burden, is a part of a process to make decisions on budget and all kinds of fund. A bill imposing fiscal burden should be accompanied with bill cost estimates in order to take fiscal effects into the consideration during deliberation of the bill. This paper analyzes the effects of budget-related bills on government expenditure, revenue and fiscal balance.

On Nov. 7th 2008, 567 bills are cases imposing fiscal burden out of 1,705 bills which are now pending. Among 567 cases, 190 bills are accompanied with bill costs estimates. According to analyses, if all the bills are passed, an adverse balance of 42.4trillion won would be found in fiscal year 2009 as government expenditure would be increased as much as 19.6 trillion won while government revenue would be declined as 22.7 trillion won at the same time.

Since the budget-related bills have continuous influence on national finance in the future, they should be deliberated carefully considering their effects on fiscal balance. This is one of the important ways to keep soundness of fiscal balance.