The purpose in this report is to provide assessment of Korea’s Consolidated Fiscal Balance statistics in relation to accuracy and transparency. Consolidated fiscal bal-ance undertakes crucial role in fiscal statistics. this not only offers fundamental material which can figure out national fiscal operation at a glance, but also helps to implement mid-long term fiscal outlook. Recent Korea fiscal statistics fall short in some key areas, such as statistical consistency and fiscal transparency.
The GFS (Government Finance Statistics) excluded the FESF (Foreign Exchange Stabilization Fund), which is considered a constituent part of the monetary author-ities accounts along with the recommendations of the GFSM 1986 (Government Finance Manual 1986). Nevertheless, from 2006 through 2008, interest payments of FESF are included in the Consolidated Fiscal Balance, so that it brings the overesti-mation of fiscal deficit. And In 2009, both interest payments and interest revenues of FESF are included in the Consolidated Fiscal Balance. This resulted in the over-estimation of total expenditure and total revenue. And also, statistical discrepancies may be appeared in intermediate fiscal data.
On the other hand, MOSF (Ministry of Strategy and Finance) has putting little weight on the accessibility of statistical data so that a it is impossible for many users to look at the big picture of entire government operation.
In this regards, this report proposed that the government should make an effort to improve the accuracy and transparency in the Korea’s fiscal statistics.
The GFS (Government Finance Statistics) excluded the FESF (Foreign Exchange Stabilization Fund), which is considered a constituent part of the monetary author-ities accounts along with the recommendations of the GFSM 1986 (Government Finance Manual 1986). Nevertheless, from 2006 through 2008, interest payments of FESF are included in the Consolidated Fiscal Balance, so that it brings the overesti-mation of fiscal deficit. And In 2009, both interest payments and interest revenues of FESF are included in the Consolidated Fiscal Balance. This resulted in the over-estimation of total expenditure and total revenue. And also, statistical discrepancies may be appeared in intermediate fiscal data.
On the other hand, MOSF (Ministry of Strategy and Finance) has putting little weight on the accessibility of statistical data so that a it is impossible for many users to look at the big picture of entire government operation.
In this regards, this report proposed that the government should make an effort to improve the accuracy and transparency in the Korea’s fiscal statistics.