NABO Economic Trends & Issues (Issue No. 31)
❑ The government submitted a budget plan for 2015 that included 382.7 trillion won in total revenue and 376 trillion won in total expenditure for economic reinvigoration and the realization of safe society, etc. to the National Assembly.
◦ Compared to the 2014 budget, total revenue increased by 13.4 trillion won (3.6%) and total expenditure increased by 20.2 trillion won (5.7%)
◦ The financial soundness of the 2015 budget plan is undermined due to the expansion of government expenditure for the stimulation of the sluggish domestic economy, the prevention of large-scale safety accidents like the Sewol ferry accident, and the reinforcement of welfare for the socially disadvantaged class, etc.
❑ The National Assembly Budget Office (NABO) estimated the fiscal aggregate indicators for 2015 including total revenue, total expenditure, fiscal balance, and government debt, etc. based on its independent economic forecast and analyzed major
economic issues.
◦ Amid the coexistence of internal and external economic risks, public finance needs to play an active role for the mitigation of external shocks and continuous and stable growth of the national economy.
◦ As tax revenue which covers government spending is decided based on economic growth, business performance, and household income, etc., it is important to appropriate a proper amount of tax revenue based on an accurate diagnosis of the economic situation.
❑ This special issue is a summary of the「Economic Forecast and Fiscal Analysis Series」 which NABO published to enhance people's understanding and support the National Assembly's deliberation on budget plans by reviewing the internal and external economic situation in 2015 and analyzing the propriety of the government's budget plan and its impact on mid-term fiscal soundness and major issues.
◦ Compared to the 2014 budget, total revenue increased by 13.4 trillion won (3.6%) and total expenditure increased by 20.2 trillion won (5.7%)
◦ The financial soundness of the 2015 budget plan is undermined due to the expansion of government expenditure for the stimulation of the sluggish domestic economy, the prevention of large-scale safety accidents like the Sewol ferry accident, and the reinforcement of welfare for the socially disadvantaged class, etc.
❑ The National Assembly Budget Office (NABO) estimated the fiscal aggregate indicators for 2015 including total revenue, total expenditure, fiscal balance, and government debt, etc. based on its independent economic forecast and analyzed major
economic issues.
◦ Amid the coexistence of internal and external economic risks, public finance needs to play an active role for the mitigation of external shocks and continuous and stable growth of the national economy.
◦ As tax revenue which covers government spending is decided based on economic growth, business performance, and household income, etc., it is important to appropriate a proper amount of tax revenue based on an accurate diagnosis of the economic situation.
❑ This special issue is a summary of the「Economic Forecast and Fiscal Analysis Series」 which NABO published to enhance people's understanding and support the National Assembly's deliberation on budget plans by reviewing the internal and external economic situation in 2015 and analyzing the propriety of the government's budget plan and its impact on mid-term fiscal soundness and major issues.