There are 288 public institutions under the “Act on the Management of Public Institutions.” The government has supported programs for those institutions in the budget in the form of contributions, investments, subsidies, and financial loans.
However, since government budget bills are compiled by each executive branch agency, it is hard to figure out the total amount of budget for 288 public institutions. Therefore, the National Assembly Budget Office (NABO) undertook the task of determining allocation for public institutions. According to NABO’s analysis, the draft budget for public institutions in 2013 is expected to be 41.1 trillion won, which increased by 2.7 trillion won compared to 2012 (38.4 trillion won). It accounts for 12 percent of the governments total expenditure for 2013 (342.5 trillion won).
Public institutions earn their revenue in various ways, from their commissioned affairs or monopolies to self-generation. If public institution itself has enough resources, some should be returned to state coffers as a dividend. This is desirable for fiscal soundness as well as efficient distribution. Therefore, when we examine a draft budget for public institutions, both feasibility and financial status need to be reviewed.
This report analyzed feasibility and performance results in terms of budget proposal for 74 public institutions, which amounts to 16.1 trillion won. At the same time, NABO evaluates whether each public institution needs funding or not, based on its financial condition and the spare resources of each public institution.
Public Institution Evaluation Division
However, since government budget bills are compiled by each executive branch agency, it is hard to figure out the total amount of budget for 288 public institutions. Therefore, the National Assembly Budget Office (NABO) undertook the task of determining allocation for public institutions. According to NABO’s analysis, the draft budget for public institutions in 2013 is expected to be 41.1 trillion won, which increased by 2.7 trillion won compared to 2012 (38.4 trillion won). It accounts for 12 percent of the governments total expenditure for 2013 (342.5 trillion won).
Public institutions earn their revenue in various ways, from their commissioned affairs or monopolies to self-generation. If public institution itself has enough resources, some should be returned to state coffers as a dividend. This is desirable for fiscal soundness as well as efficient distribution. Therefore, when we examine a draft budget for public institutions, both feasibility and financial status need to be reviewed.
This report analyzed feasibility and performance results in terms of budget proposal for 74 public institutions, which amounts to 16.1 trillion won. At the same time, NABO evaluates whether each public institution needs funding or not, based on its financial condition and the spare resources of each public institution.
Public Institution Evaluation Division