[Exclusive] Fiscal Management Strategy Committee Elevated to Ministerial Level... Establishing an Inter-Ministerial "Fiscal Control Tower"

Legislative Process Begins for Partial Amendment to the Enforcement Decree of the National Fiscal Act

Advisory Body Upgraded to Deliberative and Coordinating Committee

"Restoring Inter-Ministerial Consultative Body Lost After Ministry Split"

The Fiscal Management Strategy Committee, an advisory body previously chaired by the Vice Minister of the Ministry of Planning and Budget, will be elevated to a deliberative and coordinating body chaired by the Minister.

On May 19, the Ministry of Planning and Budget announced that it had prepared a draft amendment to the Enforcement Decree of the National Fiscal Act containing these provisions and has begun the legislative process. Once the public notice period concludes in June, the amendment will go through review by the Ministry of Government Legislation and deliberation at a Cabinet meeting before taking effect. According to the amendment, the Fiscal Management Strategy Committee will shift its status and function to a deliberative and coordinating body that directly deliberates and decides on the establishment of mid- to long-term fiscal management strategies, fiscal structure reforms, restructuring of overlapping projects, and investment directions for key fiscal projects in each sector. Currently, its role has been limited to gathering opinions and providing advice on the establishment of fiscal management strategies.

Yonhap News Agency

The core change concerns the level of the committee. The position of committee chair, which was previously held by the Vice Minister, will now be taken on directly by Minister Park Honggeun. Accordingly, committee members will also be elevated from high-ranking officials of major ministries to minister-level officials. This amendment aims to fill the gap in fiscal policy discussion channels within the Ministry of Planning and Budget. During the era of the Ministry of Strategy and Finance, there were ministerial-level consultative bodies such as the Economic Ministers’ Meeting that brought together various ministries. However, since the Ministry of Economy and Finance and the Ministry of Planning and Budget were separated earlier this year, there have been criticisms that there is no body within the Ministry of Planning and Budget that can convene ministers from other ministries to discuss current issues. An official from the Ministry explained, "During the time of the Ministry of Strategy and Finance, there were various meetings such as the Economic Ministers’ Meeting and the Foreign Economic Ministers’ Meeting, but since the ministries were separated, there have been no meetings related to fiscal management or policy. That is why the Fiscal Management Strategy Committee is being elevated to a ministerial-level deliberative and coordinating body."

The Ministry expects that, through the Fiscal Management Strategy Committee, it will be able to efficiently coordinate the interests of various ministries in setting major expenditure restructuring and mid- to long-term investment directions as the fiscal control tower. In addition, to enhance transparency and expertise in fiscal policy formulation, the amendment increases the maximum number of appointed committee members from "up to 15" to "up to 20." This is to strengthen the participation of experts with extensive knowledge and experience and to better reflect the voices of civil society.

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