This report looks at fiscal management and tax reform for 2011 and finalized budget for 2012 along with the economic situation in the first quarter of 2012 in relation to the future direction of fiscal management based on economic outlook to 2016.
NABO projects our economy will maintain modest recovery until 2014. Total revenue is expected to be about 29.8 trillion won lower than administration’s plan during 2012~2015, and total outlays are expected to increase by 4.8% annual rate because of the continuous increment in mandatory expenditure despite unchanged discretionary expenditure. Thus, in order to achieve a balanced budget in preparation for economic downturn, broadening sources of tax revenue and adoption of the PAYGO system are needed.
Suh Jaeman
NABO projects our economy will maintain modest recovery until 2014. Total revenue is expected to be about 29.8 trillion won lower than administration’s plan during 2012~2015, and total outlays are expected to increase by 4.8% annual rate because of the continuous increment in mandatory expenditure despite unchanged discretionary expenditure. Thus, in order to achieve a balanced budget in preparation for economic downturn, broadening sources of tax revenue and adoption of the PAYGO system are needed.
Suh Jaeman