The FY 2013 Final Accounts Analysis for Top-down Budgeting, which is the ninth report of the FY Final Accounts Analysis Series, is a report that analyzes total revenue, total expenditure, fiscal balance, government debt, and overall fiscal management on a top-down basis. This report was introduced for the first time in the FY 2013 final accounts in response to criticism that the National Assembly reviews the budget and final account only from a micro perspective and at the project-specific level.
This report analyzed economic conditions, fiscal management, and ways to obtain fiscal soundness for 2013 with respect to aggregate fiscal discipline.
This report analyzed fiscal management from 13 respects including government financial statements, fund financial statements, surplus fund management practices, projects funded by supplementary budgets, changes in expenditure to cover deficits, diversion of budgets and changes in fund management plans, projects with inactive annual budget execution, final accounts for new fiscal projects, misappropriation of budgets, and final accounts for projects for which budgets are allocated on an ad-hoc basis.
In 2013, the total revenues were KRW 351.9 trillion and the total expenditures were KRW 337.7 trillion. Given the difficult economic conditions, expansionary fiscal policies including supplementary budgets and expedited budget execution were implemented. There was a deficit of KRW 8.9 trillion due to inaccuracy in economic forecasting. Fiscal space for the second half of the year decreased due to expedited budget execution, and fiscal soundness indicators such as government debt (KRW 482.6 trillion, 33.8% of GDP) and government balance under management (KRW 21.1 trillion) deteriorated.
For projects implemented with supplementary budgets in 2013, it was found that 93.1% of the budgets were executed, showing insufficient budget execution. Although GDP rose in the second quarter of 2013 by 1.0% year-on-year, the outcome of some projects implemented with supplementary budgets including the job creation project was inadequate.
The analysis of expenditure adjustment resulting from a deficit in revenue in 2013 discovered inappropriate execution (e.g., carryover and disuse) of local grants and local education subsidies.
The report also found misappropriation in the budgets of 27 projects of 17 ministries and agencies.
This report analyzed economic conditions, fiscal management, and ways to obtain fiscal soundness for 2013 with respect to aggregate fiscal discipline.
This report analyzed fiscal management from 13 respects including government financial statements, fund financial statements, surplus fund management practices, projects funded by supplementary budgets, changes in expenditure to cover deficits, diversion of budgets and changes in fund management plans, projects with inactive annual budget execution, final accounts for new fiscal projects, misappropriation of budgets, and final accounts for projects for which budgets are allocated on an ad-hoc basis.
In 2013, the total revenues were KRW 351.9 trillion and the total expenditures were KRW 337.7 trillion. Given the difficult economic conditions, expansionary fiscal policies including supplementary budgets and expedited budget execution were implemented. There was a deficit of KRW 8.9 trillion due to inaccuracy in economic forecasting. Fiscal space for the second half of the year decreased due to expedited budget execution, and fiscal soundness indicators such as government debt (KRW 482.6 trillion, 33.8% of GDP) and government balance under management (KRW 21.1 trillion) deteriorated.
For projects implemented with supplementary budgets in 2013, it was found that 93.1% of the budgets were executed, showing insufficient budget execution. Although GDP rose in the second quarter of 2013 by 1.0% year-on-year, the outcome of some projects implemented with supplementary budgets including the job creation project was inadequate.
The analysis of expenditure adjustment resulting from a deficit in revenue in 2013 discovered inappropriate execution (e.g., carryover and disuse) of local grants and local education subsidies.
The report also found misappropriation in the budgets of 27 projects of 17 ministries and agencies.