Autumn, Fiscal Management System Inspection... "Expansion of Subsidy Fraud Inspection"

[Asia Economy Sejong=Reporter Lee Jun-hyung] The government is strengthening inspections to detect fraudulent claims of national treasury subsidies.

On the afternoon of the 6th, Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho visited the Korea Fiscal Information Service located in Jung-gu, Seoul, and announced this. The Fiscal Information Service operates and manages the Digital Budget Accounting System (D-Brain Plus) and the National Treasury Subsidy Management System (e-Naradoom). Deputy Prime Minister Choo said, "We must significantly expand e-Naradoom monitoring and joint inspections with related ministries to prevent fraudulent subsidy claims," adding, "We will also promote system advancement to improve the accuracy of fraud detection."

Deputy Prime Minister Choo emphasized inspections on fraudulent claims of national treasury subsidies based on the judgment that such cases have increased alongside a sharp rise in subsidy payments during the Moon Jae-in administration. According to the Ministry of Economy and Finance, national treasury subsidies surged 52.9% over the past five years, from 66.9 trillion won in 2018 to 102.3 trillion won this year. In this regard, Deputy Prime Minister Choo stated at the Emergency Economic Ministers' Meeting on the 4th, "We will completely improve the subsidy management system to prevent fraudulent claims of national treasury subsidies, which have recently surged to around 100 trillion won annually."

Accordingly, the Ministry of Economy and Finance has decided to form a 'Joint Subsidy Execution Inspection Task Force' with related ministries. This is to comprehensively reorganize the national treasury subsidy management system, including registering all private subsidy operators in e-Naradoom by central government ministries. A Ministry of Economy and Finance official explained, "In cases where subsidies are executed in multiple stages by each ministry, there are instances where lower-level subsidy operators responsible for settlement fail to register in e-Naradoom," adding, "This makes it difficult to inspect fraudulent claims and causes problems in integrated management of national treasury subsidies through the system."

Joint inspections of fraudulent claims of national treasury subsidies by related ministries will increase from 330 cases last year to 400 cases this year, an increase of 70 cases. The government also plans to amend related laws to require accounting audits for those receiving 300 million won or more in national treasury subsidies. Under current law, accounting audits are limited to those receiving 1 billion won or more in national treasury subsidies.

Meanwhile, Deputy Prime Minister Choo also checked the operation status of the National Fiscal Management System at the Fiscal Information Service on the same day. The government believes there will be no problems achieving fiscal execution goals as the current Digital Budget Accounting System processes an average daily transfer of 13.3 trillion won and receipts of 6.5 trillion won in national treasury funds. The government has announced it will promptly execute more than 65% of the national budget in the first half of next year.

Deputy Prime Minister Choo Kyung-ho Presiding Over Emergency Economic Ministers' Meeting
(Sejong=Yonhap News) Reporter Kim Juhyung = Choo Kyung-ho, Deputy Prime Minister and Minister of Economy and Finance (left), is speaking at the Emergency Economic Ministers' Meeting held at the Government Complex Sejong in Sejong City on the morning of January 4, 2023.
kjhpress@yna.co.kr
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