I. Economic Trends
   Korea’s overall economic vitality has been recently sapped by significant decreases in private consumption and equipment investment, with the exception of vibrant investment in construction.

II. Highlights and Directions for Analysis of the 2017 Budget Bill
   The government submitted to the National Assembly the 2017 Budget Bill of KRW 414.5 trillion in gross revenue and KRW 400.7 trillion in gross expenditure. With respect to the bill, analysis is needed on adequacy of the economic growth projection applied to the revenue estimate, the financial resources allocated to each sector, and the introduction of the debt rule, the budget balance rule and the PAYGO policy.

III. Background to the Growing Number of Those Eligible for Tax Exemptions and Measures for Improvement
   The percentage of those eligible for tax exemptions had declined up to and including 2013, before sharply rebounding in 2014 as a result of amendments to the Income Tax Act. As this increased percentage can erode tax bases and alter taxpayer attitude towards paying tax, aggressive interventions, including modification of the overall tax deduction scheme, are essential.
 
Ⅳ. Issues of and Recommendations for the Infant Care Support Scheme
   Currently, the government provides a daycare allowance for infants (aged 0-2) who attend a childcare center or a home childcare allowance for infants who stay at home. The policy has exposed issues of the imbalance between demand and supply of childcare centers and the insufficiency of the home childcare allowance to incentivize parents to look after their children at home. The government needs to come up with measures to resolve this imbalance and raise the home childcare allowance.