[2020 National Audit] 568 Trillion KRW in Budget Carryovers and Unused Funds Over the Past Decade... Recurring Annually

[Asia Economy Reporter Lee Kwang-ho] It has been revealed that over the past 10 years, budgets amounting to 568 trillion won were either carried over to the following year or left unspent in the current year.

According to data submitted on the 7th by Lee Kwang-jae, a member of the National Assembly's Planning and Finance Committee from the Democratic Party of Korea, received from the Ministry of Strategy and Finance, Ministry of the Interior and Safety, and Ministry of Education, the total carryover amount of central, local governments, and education finances over the past 10 years was 306.3968 trillion won, and the total unused amount was 261.982 trillion won, totaling 568.3788 trillion won.

Breaking down the carryover and unused budget amounts over the past 10 years by central government, local governments, and education finances, the figures were 152.4141 trillion won for the central government, 362.7714 trillion won for local governments, and 53.1933 trillion won for education finances.

Rep. Lee stated, "Not only the central government but also local governments and education finances repeatedly experience unused and carried-over budgets every year," adding, "This is because the budget process is structurally weak not only at the budget formulation stage but also at the final stage of the budget process, which is settlement."

In the case of local finances, the Ministry of the Interior and Safety provides financial incentives to local governments with excellent execution and reflects the carryover and unused rates in the calculation of the general grant tax, but there is still a limitation in that the settlement review process is not as rigorous as the budget review process.

Meanwhile, the Ministry of Education also guides city and provincial education offices on measures to reduce carryover and unused amounts and encourages financial execution, but the carryover amounts have rather increased, and the unused amounts remain stagnant.

Rep. Lee emphasized, "It is time to strengthen investment reviews of metropolitan and basic local governments and to consider a comprehensive budget and settlement system covering central, local, and education finances so that government settlements can be conducted more productively."

This content was produced with the assistance of AI translation services.