The National Assembly Budget Office (NABO) has published the “2011 revised Economic Outlook and Public Finance Analysis Report” since last year, in order to support the National Assembly by suggesting the way to operate national finance at the point of establishing ‘National Fiscal Management Plan’ by the government and of compiling budget proposal for the next year. This report contains the economic situation from the first quarter of 2011, the future direction of fiscal management based on economic outlook until 2015 by reflecting outcome of fiscal management and tax reform for 2010, finalized budget for 2011.
NABO projects our economy will retain four percent growth rate after 2012. Total revenue is expected to maintain a similar level with initial administration’s plan. However total outlays is expected to be increased by five percent annual rate because of continuous increment in mandatory expenditure despite of unchanged discretionary expenditure. Thus, in order to achieve the balanced budget that administration proposed in the ‘2010–2014 National Fiscal Management Plan,’ besides broadening source of tax revenue such as modifying tax-free and tax exemption, more aggressive efforts to reduce expenditure are needed.
NABO projects our economy will retain four percent growth rate after 2012. Total revenue is expected to maintain a similar level with initial administration’s plan. However total outlays is expected to be increased by five percent annual rate because of continuous increment in mandatory expenditure despite of unchanged discretionary expenditure. Thus, in order to achieve the balanced budget that administration proposed in the ‘2010–2014 National Fiscal Management Plan,’ besides broadening source of tax revenue such as modifying tax-free and tax exemption, more aggressive efforts to reduce expenditure are needed.
Economic Analysis Office