The National Assembly Budget Office (NABO) has annually published “Mid-long Term Fiscal Demand Analysis” categorized by programs. The evaluation of ‘National Fiscal Management Plan’ is indispensible to accomplish mid to long term efficient distribution of national finance. In these regards, NABO has estimated the scale of fiscal demand in the Industries, SMEs, Energy Sector programs from the year of 2011 to 2015.

  It is noticeable that the estimated figure of financial cost by NABO is 4.7 trillion won, higher than that of the ‘National Fiscal Management Plan’ for the Industries, SMEs, Energy Sector programs. The disparity of estimated figures between NABO and government implies that the ‘National Fiscal Management Plan’ did not fully reflect the financial demand of each department, or the expenditure of each department plan without appropriately considering the ‘National Fiscal Management Plan.’

  And the tax reduction and exemption of the Industries, SMEs, Energy Sector in 2012 amounts to 9.1 trillion won which is approximately 37.4 percent in total 24.3 trillion won including 15.2 trillion won in the expenditure of that sector. Therefore the comprehensive review on the fiscal expenditure and the tax reduction is needed in terms of the fiscal management.