Scorekeeping of the Bills Approved in 2022

Published on 26 May, 2023
Published by Estimates & Tax Coordination Division

   Scorekeeping is used to analyze the fiscal impact of legislation on central or local governments by estimating the projected revenue and expenditures for 5 years upon the passage of legislation in the National Assembly. In 2022, among the 433 laws passed, 110 laws (containing 221 budget-related elements) have fiscal impacts and are subject to scorekeeping.
   As a result of scorekeeping, it is expected that from 2023 to 2027, the annual average revenue of KRW 16,399.4 billion will decrease due to the enforcement of revenue-related laws, while the annual average expenditure of KRW 1,953.3 billion will increase due to the enforcement of expenditure-related laws.
   Within the category of revenue-related laws, an annual average revenue decrease is expected as follows: KRW 4,116.3 billion from the 「Corporate Tax Act」, KRW 2,699.2 billion from the 「Income Tax Act」, KRW 8,235.1 billion from the 「Act on Restriction of Special Taxation」, and KRW 1,120.2 billion from the 「Comprehensive Real Estate Holding Tax Act」. In addition, based on the types of budget-related elements affecting revenue, an annual average revenue decrease is expected as follows: KRW 5,942.3 billion for the tax base, KRW 5,228.2 billion for the tax rate, KRW 3,290.9 billion for tax deductions and credits, and KRW 1,777.8 billion for taxable objects. Regarding expenditure laws, an annual average increase is expected per government function as follows: KRW 550.7 billion for general public services, KRW 140.8 billion for education, KRW 137.7 billion for environmental protection, KRW 459.1 billion for social protection, KRW 398.6 billion for agricultural and fisheries and KRW 116.5 billion for housing and community amenities. Additionally, a reduction of KRW 366.7 billion is expected in mandatory spending, while discretionary spending is expected to increase by KRW 2,320 billion.
   In summary, scorekeeping of the bills approved in 2022 anticipates that the increase in expenditure due to the impact of passed legislation will be smaller compared to preceding years, while the decrease in revenue will be noticeably larger.