Politics · South Korea · 1 hr ago
South Korea to track how government grants and R&D funds are actually spent
South Korea will track how government funds are actually spent from next year, starting with private grants and research and development funding.
The change shifts oversight from checking how much money the government sends to institutions to checking how much reaches final recipients.
By the end of June, 14.6 trillion won had been distributed, but only 6.7 trillion won, or 46.3%, had been spent.
The gap left about 7.8 trillion won unspent, while early funding also added to the government's borrowing costs.
The first phase covers 49.6 trillion won in private grants and R&D contributions, and local government grants are due to be added gradually by 2030.
Projects at risk of delay will be reviewed every quarter, and actual spending will affect future funding requests and allocations.
The government plans to publish detailed management rules and targets for spending in the first half of the year next January.
South Korea will shift from tracking funds transferred to agencies to tracking how much reaches final recipients.
The system will begin next year with private-sector subsidies and research and development grants.
The government said the change responds to weak actual spending despite early-year fund transfers.
It will check spending plans quarterly and use actual spending records when allocating funds.
Local government subsidy programs are due to be added in stages by 2030.
- Who
- South Korea’s government, led by the Ministry of Planning and Budget.
- What
- It will introduce a system to track actual spending of government grants and R&D funds.
- When
- Starting next year; the government plans to announce detailed management plans in January.
- Where
- South Korea.
- Why
- Funds transferred early in the year were not being spent at the same pace, and early disbursement created borrowing costs.
This story does not have two clearly opposing sides.
The government announced its plan to revise the fiscal spending management system.
The government plans to begin tracking actual spending on private-sector subsidies and R&D grants.
The government plans to announce detailed fiscal spending management plans and first-half spending targets.
Local government subsidy programs are to be added in stages.
- Actual spending at June 30
- 6.7 trillion won, or 46.3% of the 14.6 trillion won transferred
- Initial coverage
- 19.6 trillion won in private-sector subsidies and 30 trillion won in R&D grants
- Share of expedited-spending management pool
- About 15%
- Planned coverage by 2030
- 92% of the overall fiscal spending management pool