Government to Cut 300 Billion KRW Over 3 Years from Inefficient Subsidy Projects
'2020 3rd Subsidy Management Committee Meeting' Held
Koo Yoon-chul, Vice Minister of the Ministry of Economy and Finance, is delivering opening remarks while presiding over the '3rd Subsidy Management Committee' held on the 8th at the Government Seoul Office in Gwanghwamun, Seoul.
View original image[Asia Economy Reporter Joo Sang-don] The Ministry of Economy and Finance has decided to cut 300 billion KRW over three years from 87 subsidy projects with low efficiency.
On the 8th, the Ministry announced that it held the '3rd Subsidy Management Committee Meeting of 2020' at the Government Seoul Office, chaired by Second Vice Minister Koo Yoon-cheol, and made this decision.
The extension evaluation of subsidy projects is conducted annually according to the Subsidy Act to assess the necessity of support and project effectiveness for projects whose duration (3 years) is expiring. To ensure objectivity, the evaluation is carried out by an evaluation team composed of private experts and finalized through the resolution of the Subsidy Management Committee.
This evaluation targeted 241 projects from 26 ministries, with a budget scale of 8.6 trillion KRW based on the 2020 budget. As a result, about 300 billion KRW was decided to be cut from 87 projects, which account for 36.1% of the 241 projects. Specifically, 14 projects will be abolished, 5 projects will be merged or consolidated, and 68 projects will be reduced. The remaining 130 projects will have their project methods changed, and 24 projects will proceed as normal.
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Vice Minister Koo said, "We focused on projects with low necessity for support due to similarity or duplication with other projects, achievement of goals, or poor execution or performance." He added, "The evaluation results will be reflected in the 2021 budget formulation process and are planned to be submitted to the National Assembly along with the 2021 budget proposal."
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