The 10th report in the 2012 Final Accounts Analysis Series, the FY 2012 Final Accounts Analysis by Topic offers a comprehensive analysis of issues related to the nation’s finance commonly identified across various ministries. This report is useful in that it helps get an overall grasp of issues and problems in the government’s financial management.
This report presents analyses of ten topics in relation with the FY 2012 final accounts?analysis of national financial statements; financial analysis of funds; analysis of reserves in the funds; tax surplus analysis; analysis of transfers, use, diversions, and disuse of budget and analysis of changes in fund operation plans and disuse of the funds; analysis of programs where funding was found to be poorly executed annually; analysis of budgetary changes for programs whose budget was either increased or decreased by the National Assembly; final accounts analysis for newly instituted programs; analysis of cases where budget was used for other unstated purposes; and final accounts analysis for mandatory spending.
Our findings show that transfers, use, and diversions of the 2012 budget (general account and special accounts) totaled 3.57 trillion, representing 1.26% of the budget totals (282.69 trillion), and changes in fund operation plans totaled 3.95 trillion (2.67% of the original plan). At minus 0.1 trillion won, the tax surplus?the gap between tax receipts and outlays?turned to a deficit for the first time in history, warranting the need to minimize budget transfers without tax revenue sources and to restructure outlays.
Analysis of programs where the budget execution seems to be delayed as a practice showed that the problem of slow budget execution had still not improved over the last year. Of the total budget amount of 7.46 trillion for 150 programs under 25 ministries and agencies, only 3.48 trillion, or 39.2%, was executed, compared to the 45.3% executed in 2011.
During review of the 2012 budget bill, the National Assembly increased or decreased the budgets of 1,377 programs of 50 ministries and government agencies. Final accounts showed that the budgets of 329 programs of 37 ministries and government agencies had been changed in some way, i.e. through transfer, diversion, or adjustment. Also, in 46 programs of 25 ministries and government agencies, it was found that the budget had been changed to allow for new projects not originally planned for, major plans were changed in terms of how and where the money would be used, or the budget was used for other unstated purposes.
Budget Analysis Office
This report presents analyses of ten topics in relation with the FY 2012 final accounts?analysis of national financial statements; financial analysis of funds; analysis of reserves in the funds; tax surplus analysis; analysis of transfers, use, diversions, and disuse of budget and analysis of changes in fund operation plans and disuse of the funds; analysis of programs where funding was found to be poorly executed annually; analysis of budgetary changes for programs whose budget was either increased or decreased by the National Assembly; final accounts analysis for newly instituted programs; analysis of cases where budget was used for other unstated purposes; and final accounts analysis for mandatory spending.
Our findings show that transfers, use, and diversions of the 2012 budget (general account and special accounts) totaled 3.57 trillion, representing 1.26% of the budget totals (282.69 trillion), and changes in fund operation plans totaled 3.95 trillion (2.67% of the original plan). At minus 0.1 trillion won, the tax surplus?the gap between tax receipts and outlays?turned to a deficit for the first time in history, warranting the need to minimize budget transfers without tax revenue sources and to restructure outlays.
Analysis of programs where the budget execution seems to be delayed as a practice showed that the problem of slow budget execution had still not improved over the last year. Of the total budget amount of 7.46 trillion for 150 programs under 25 ministries and agencies, only 3.48 trillion, or 39.2%, was executed, compared to the 45.3% executed in 2011.
During review of the 2012 budget bill, the National Assembly increased or decreased the budgets of 1,377 programs of 50 ministries and government agencies. Final accounts showed that the budgets of 329 programs of 37 ministries and government agencies had been changed in some way, i.e. through transfer, diversion, or adjustment. Also, in 46 programs of 25 ministries and government agencies, it was found that the budget had been changed to allow for new projects not originally planned for, major plans were changed in terms of how and where the money would be used, or the budget was used for other unstated purposes.
Budget Analysis Office