7TH FISCAL MANAGEMENT MEETING

Vice Minister of Strategy and Finance Lee Suk-joon presided over the 7th Fiscal Management Meeting on June 14. At the meeting, fiscal expenditure performance results as of the end of May were reviewed and fiscal expenditure management directions were discussed.

The Vice Minister praised government ministries and institutions, saying that: ‘Owing to the efforts of each ministry and public institution, we reached our fiscal expenditure goals for the end of May.’ The Vice Minister emphasized that, more than any other time, it is important to feel economic stimulus effects through the frontloading of fiscal expenditure until the end of the 2nd quarter when taking into account recent economic conditions.

The fiscal expenditure ratio as of the end of May amounted to 47.8%, 0.5%p higher than the ministry’s goal of 47.3%.

At this meeting, the fiscal expenditure plan was decided: 30% in the 2nd quarter and 70% in the 3rd quarter in order for supplementary budget projects to play the role of priming the economy and promoting a rebound. The monthly Fiscal Management Meeting will manage and monitor supplementary budget expenditure in order for supplementary budget projects to be executed with the greatest possible speed.

The fiscal expenditure plan for the 2nd half of 2013 will be rechecked, in its entirety, in order to improve the ‘end of the year budget binge’ practice that is repeated every year, and necessary actions will be taken, such as revising the fiscal expenditure plan and offering expenditure guidelines.