Reducing Duplicate Evaluations in Financial Projects and Integrating Information Disclosure... Strengthening Performance Management

Ministry of Economy and Finance to Announce and Enforce National Finance Act Amendment on the 21st

[Sejong=Asia Economy Reporter Moon Chaeseok] To strengthen the performance management of fiscal projects funded by taxpayers' money, the government has prepared measures to minimize duplicate evaluations and integrate and disclose information.

The Ministry of Economy and Finance announced on the 21st that it will promulgate and enforce an amendment to the National Finance Act containing a systematization plan for fiscal project performance management. Performance management of fiscal projects is a system that sets project goals and performance indicators in advance to use the budget effectively, and reflects evaluation results back into the budget and other areas.

Until now, performance management of fiscal projects was minimally regulated under Article 8 of the National Finance Act, including submission of performance plans and reports and conducting evaluations of fiscal projects, but the amended law reflects this in a separate chapter.

The amended law requires fiscal authorities to report a five-year basic plan for performance management, an annual implementation plan, and performance goal management results to the Cabinet meeting.

Considering that multiple systems such as the fiscal evaluation system under the National Finance Act and evaluation systems under individual laws are currently in operation, the law mandates efforts to prevent duplicate evaluations between evaluation systems. This is a measure to reduce the burden on individual ministries subject to evaluation.

Each ministry is required to designate fiscal performance officers and performance operation officers to establish a high-level promotion system and form a performance evaluation team composed of external experts to enhance the professionalism and accountability of evaluations.

Performance information, which is divided by ministry, will be managed and disclosed in an integrated manner, and the results of performance management will be reflected in organizational, budgetary, personnel, and compensation systems.

Jicheol Bae, Fiscal Performance Officer at the Ministry of Economy and Finance, said, "With this amendment, performance management of fiscal projects will be strengthened and unnecessary administrative burdens on ministries will be reduced," adding, "We will incorporate various opinions and efficient implementation plans during the establishment of the basic performance management plan and the 2022 implementation plan."

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