Korea to cut discretionary spending by 10% next year

 

Korea will cut spending by government ministries and agencies by ten percent next year. Hwang Ji-hye keeps us up to date on the Government′s plan to restructure its expenditures to focus on creating new jobs and increasing the country’s growth potential.

During a Cabinet meeting on Tuesday, the Korean government approved a budget guideline for next year that will cut discretionary spending by ministries and agencies by ten percent. The savings will be used for projects to create jobs for young people and women and to foster new growth engines.  In fact, a new survey requested by the finance ministry and conducted by Gallup Korea shows that more than a quarter of a thousand people surveyed said the jobs sector is the most in need of fiscal spending.

The finance ministry says, however, that the cut does not mean the government is trimming the budget as a whole; rather it′s restructuring its spending to boost efficiency. Discretionary spending makes up around 50 percent, or roughly 175 billion U.S. dollars, of this year′s roughly 330 billion dollar budget.

If the items that can′t be cut from discretionary spending, like labor, are subtracted, a cut of around 13 billion dollars is expected in next year′s budget. The budget restructuring comes amid lingering economic uncertainties at home and abroad, resulting in sluggish tax revenue, along with a rising demand for social welfare due to the aging population and a low birth rate.

Each ministry will have to submit its budget plans by the end of May to the finance ministry. The finance ministry will then put it all together and conduct a review so it can submit the government′s 2017 budget plan to the parliament in early September.

 

 

 

정부는 내년 정부 부처의 지출을 10% 줄이기로 했습니다. 황지혜 기자가 정부의 일자리 창출 및 성장 잠재력확충을 위한 정부의 예산 구조조정에 관한 최신 소식을 전해드립니다..

화요일 장관 회의에서 정부는 내년도 예산 편성에서 정부 부처의 재량 지출을 10% 줄이기로 결정했습니다. 여기서 절감한 예산은 젊은이들과 여성에 대한 일자리를 창출하고 새로운 성장 동력을 육성하기 위한 프로젝트를 위해 사용됩니다. 실제로 기획재정부 요청으로 한국 갤럽이 실시한 설문조사에 따르면 천 명의 응답자 중 25% 이상이 일자리 부문 재정 지원이 가장 절실하다고 답했습니다.

하지만 기획재정부는 이번 절감은 정부가 전분야에 대한 예산삭감을 실시하는 것이 아니라 실효성을 높이기위해 지출 구조조정을하는 것이라고 밝혔습니다. 재량 지출은 대략 1,750억 달러로 금년도 예산인 3,300억 달러의 약 50퍼센트를 차지합니다.

재량 지출에서 인건비 등 줄일 수 없는 비용을 제외하면 내년도 예산은 약 130억 달러 정도 절감될 것으로 예상됩니다. 이번 예산구조조정은 계속되는 대내외 경제 불확실성으로 인한 세수부족 문제와 고령 인구 및 저출산으로 인한 사회 복지 요구 증가에 따른 것입니다.

각 부처는 5월말까지 예산안을 기획재정부에 제출해야 합니다. 기획재정부는 모든 예산안을 통합해 검토한 후 국회에 9월 초까지2017년도 예산안을 제출하게 됩니다.

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