This report mainly intends to find out what is the kernel of budgetary issue in relation to reorganizing agricultural and stockbreeding business in National Agricultural Cooperative Federation (NACF). Analyzed results are as follows:
Firstly, the purpose of the reorganization is to revitalize marketing and supply business. However, specific performance plan and related contents were omitted under the revision of National Agricultural Cooperative Federation Act. If cost estimate report is not attached, it is inevitable to scrutinize capital shortage and reinvigorating plan in order to look into funding size as well as possibility to reach the target.
Secondly, problems have been pointed out regarding NACF’s marketing and supply business. Comparing between the present and the past proposal of NACF’s business, the business plan was not consistent due to change in investment details. With the aim of reviewing validity of investment size, after comparing a supply plan for the business with the business performance and agricultural outcome in Korea, both supply and investment plans were excessively designed after the reorganization. According to the investment plan for marketing and supply business, investment ratio in facility amounted to 70.3 percent (4.2 trillion won) of the total 10.0 trillion won. The plan is solely about ‘facility extension,’ which can bring out difficulty in the business.
Lastly, as the finance for Ministry for Food, Agriculture, Forestry and Fisheries are experiencing reduction in total expenditure, budget for supporting NACF is expected to influence on other budget factors, because allocated NACF budget is large. Therefore, fiscal burden should be minimized by the measure to reinforce self-financing.
Firstly, the purpose of the reorganization is to revitalize marketing and supply business. However, specific performance plan and related contents were omitted under the revision of National Agricultural Cooperative Federation Act. If cost estimate report is not attached, it is inevitable to scrutinize capital shortage and reinvigorating plan in order to look into funding size as well as possibility to reach the target.
Secondly, problems have been pointed out regarding NACF’s marketing and supply business. Comparing between the present and the past proposal of NACF’s business, the business plan was not consistent due to change in investment details. With the aim of reviewing validity of investment size, after comparing a supply plan for the business with the business performance and agricultural outcome in Korea, both supply and investment plans were excessively designed after the reorganization. According to the investment plan for marketing and supply business, investment ratio in facility amounted to 70.3 percent (4.2 trillion won) of the total 10.0 trillion won. The plan is solely about ‘facility extension,’ which can bring out difficulty in the business.
Lastly, as the finance for Ministry for Food, Agriculture, Forestry and Fisheries are experiencing reduction in total expenditure, budget for supporting NACF is expected to influence on other budget factors, because allocated NACF budget is large. Therefore, fiscal burden should be minimized by the measure to reinforce self-financing.
Byun Jaeyun