Jeongseok Lee, Former Jeonnam Provincial Council Member, Questions Budget Management System Issues

Jangseok Lee, Former Jeonnam Provincial Council Member

[Asia Economy Honam Reporting Headquarters Reporter Lee Jun-gyeong] Lee Jang-seok, a Jeonnam Provincial Assembly member (Democratic Party, floor leader), pointed out overall problems with the Jeonnam Province budget management system during the Planning and Coordination Office budget review.

According to Assemblyman Lee on the 2nd, the expected local tax revenue scale in last year's main budget formulation was 1.09 trillion KRW, while the expenditure was 1.405 trillion KRW, resulting in a discrepancy of 315 billion KRW. Also, in the main budget of 2018, which had the smallest discrepancy in local tax imposition and revenue budget reflection over the past five years, 1.023 trillion KRW was budgeted as revenue, but the final collection amount was 1.1651 trillion KRW.

Last year's main budget expected local tax revenue of 1.09 trillion KRW, but the expenditure was 1.405 trillion KRW, showing a discrepancy of 315 billion KRW.

Assemblyman Lee criticized, "Excessive occurrence of net surplus funds results in money that could be used not being properly executed and remaining idle in the treasury," adding, "Residents are not receiving the administrative services they deserve in a timely manner."

He continued, "Out of this year's net surplus funds of 277.637 billion KRW, only 90 billion KRW was reflected in the main budget," and emphasized, "Although 110 billion KRW was accounted for as net surplus funds in next year's budget formulation, the executive branch responded that it would be 250 billion KRW."

He further pointed out, "The practice of not properly reflecting net surplus funds and reflecting them arbitrarily has become habitual," and "The main reason for the large occurrence of net surplus funds is that local tax revenue estimates were set too low when formulating the main budget."

Assemblyman Lee questioned, "The Ministry of the Interior and Safety's guideline to minimize tax revenue estimate errors by conducting regular error analysis in the first half of each year and reflecting it in the next year's budget was ignored."