There are 284 public institutions under the ‘Act on the Management of Public Institutions.’ The government has supported programs of those institutions by budget in the form of contribution, investment, subsidies and financial loan.

  However, since government budget bill is compiled by each executive branch agency, it is hard to figure out the total amount of budget for 284 public institutions. Therefore, the National Assembly Budget office (NABO) undertook the task to find out its allocation for public institutions. According to NABO’s analysis, the draft budget for public institutions in 2012 is expected to be 36 trillion won and 918.3 billion won, which increased by 1,849.3 billion won compared to 2011 (35 trillion and 69 billion won). It accounts for 11.3 percent in government total expenditure for 2012 (326.1 trillion won).

  Public institutions have their revenue with various ways from their commissioned affairs or monopoly to self-generating. If public institution itself has enough resources, some should be returned to state coffer as a dividend. This will be desirable for fiscal soundness as well as efficient distribution. Therefore, when we examine a draft budget for public institution, both feasibility and financial status need to be reviewed.

  This report analyzed feasibility and performance result in terms of budget proposal for 63 public institutions, which amounts to 9,474.1 billion won. This figure accounts for 25.7 percent of draft budget for supporting public institutions in 2012. At the same time, NABO evaluates whether each public institution needs funding or not, based on its financial condition and spare resources of each public institution.