"Macro-level and Aggregate Analysis of the 2015 Budget Bills" was published to help the National Assembly effectively review fiscal aggregates, management of the budget bills and fund management plans for 2015. The main findings are as below.
In the fiscal aggregates, summary is provided for recent fiscal and economic conditions including the shortfall in tax revenue for the last three years in a row. The budget bills for 2015 are analyzed from an aggregate perspective while key investment programs to improve the economy, livelihood of the public, and safety are assessed.
In the fiscal management, the paper discusses the general rules for budget management, fund management plans, new fiscal projects, redundant projects and programs with lack of annual progress. It also looks at budget and policy issues of the local governments.
The general rules for budget management include issues arising from short-term borrowings, increased cap on the issued amount of treasury bills, and deterioration in fiscal soundness. It is also suggested to indicate the budget plans on an annual basis for the projects that are managed based on a total budget.
The report provides a comprehensive review of the management plan for 64 funds and also analyzes projects that were challenged during the budget plan review upon closing of the fiscal year of 2013 and the 2010-2012 period.
Of the 347 new projects for 2015, 41 which were challenged in the Budget Bill Analysis by Ministry, are analyzed. The report raises the need for more in-depth review over 18 projects for 2015 that are similar to or overlap with existing projects.
This report also assesses 143 projects that have been poorly executed with a progress rate of less than 70 percent in 2013 and an average progress rate of less than 70 percent from 2010 to 2013. The report also looks into 25 projects whose budget for 2015 was not cut by more than 10 percent even after they were rated as "less than satisfactory" or lower in the voluntary evaluation of the fiscal projects.
Finally, the report assesses fiscal challenges of the local governments, including decreased tax revenues caused by the drop in local taxes and central government’s tax revenue allocation and a rapid increase of social welfare spending. The report discusses countermeasures including the need to increase the rate at which national taxes are converted into regional consumption taxes, increase tax revenues allocated to the local governments, and restructure local government’s fiscal programs.
In the fiscal aggregates, summary is provided for recent fiscal and economic conditions including the shortfall in tax revenue for the last three years in a row. The budget bills for 2015 are analyzed from an aggregate perspective while key investment programs to improve the economy, livelihood of the public, and safety are assessed.
In the fiscal management, the paper discusses the general rules for budget management, fund management plans, new fiscal projects, redundant projects and programs with lack of annual progress. It also looks at budget and policy issues of the local governments.
The general rules for budget management include issues arising from short-term borrowings, increased cap on the issued amount of treasury bills, and deterioration in fiscal soundness. It is also suggested to indicate the budget plans on an annual basis for the projects that are managed based on a total budget.
The report provides a comprehensive review of the management plan for 64 funds and also analyzes projects that were challenged during the budget plan review upon closing of the fiscal year of 2013 and the 2010-2012 period.
Of the 347 new projects for 2015, 41 which were challenged in the Budget Bill Analysis by Ministry, are analyzed. The report raises the need for more in-depth review over 18 projects for 2015 that are similar to or overlap with existing projects.
This report also assesses 143 projects that have been poorly executed with a progress rate of less than 70 percent in 2013 and an average progress rate of less than 70 percent from 2010 to 2013. The report also looks into 25 projects whose budget for 2015 was not cut by more than 10 percent even after they were rated as "less than satisfactory" or lower in the voluntary evaluation of the fiscal projects.
Finally, the report assesses fiscal challenges of the local governments, including decreased tax revenues caused by the drop in local taxes and central government’s tax revenue allocation and a rapid increase of social welfare spending. The report discusses countermeasures including the need to increase the rate at which national taxes are converted into regional consumption taxes, increase tax revenues allocated to the local governments, and restructure local government’s fiscal programs.