[Interview] Maeng Seong-gyu "Is the Standing Committee Law on the Budget Committee a Budget Complete Block? ... Does the National Assembly Even Have Budget Deliberation Rights?"

Confirming the Lethargic National Assembly's Budget Deliberation Authority While Serving as Budget Committee Secretary
Package Bills Including the National Assembly Act Proposed Over 5 Months
Budget Completion Blockade Is a Ruling Party Frame...Unconvincing Argument of Government and Ruling Party Obstruction

[Asia Economy reporters Naju-seok and Park Joon-yi] Last year, Meng Seong-gyu, a member of the Democratic Party of Korea who participated in budget and settlement reviews as the ruling party's secretary, pointed out, "There are so many problems that one wonders if the National Assembly even has the right to review the budget." Based on this awareness of the problem, Rep. Meng proposed a package of three bills, including the National Assembly Act, to strengthen the National Assembly's budget review authority by converting the Special Committee on Budget and Accounts into a standing committee.

Member of the Democratic Party Maeng Seong-gyu./Photo by Yoon Dong-joo doso7@

In an interview with this publication on the 20th, Rep. Meng responded to the ruling party, including the People Power Party, criticizing the amendment to the National Assembly Act as "budget-wanbak" (complete deprivation of the government's budget formulation authority), saying, "This law was prepared five months ago and was submitted regardless of regime change," and added, "Anyone who has served even once on the Budget and Accounts Committee would not oppose it, although there may be differences." He emphasized that it is difficult to oppose the amendment without properly understanding the review process of the Budget and Accounts Committee.

On the 16th, Rep. Meng proposed through the package bill including the National Assembly Act to convert the special committee on budget and accounts into a standing committee that reviews the total fiscal volume and limits, and discusses them with the government's proposal at the National Fiscal Strategy Meeting. The budget review process was also changed so that before the government proposal is finalized, the requests from each ministry can be checked and opinions can be submitted. Last year's settlement was also reviewed before the budget proposal was submitted, with the principle of reflecting it in next year's budget. Additionally, a duplicate report system was introduced to identify overlapping budgets, and zero-based budgeting was introduced to re-examine all projects from scratch every five years to break the framework of habitual budget formulation.

- How did you come to propose this bill?

▲ I served on the Budget and Accounts Committee for about a year, and after it ended, I thought, "What is this?" Having worked as a budget officer when I was a public official and experienced the budget subcommittee in the National Assembly, I thought I could look at the budget deeply and broadly, but there was nothing I could do. It was much weaker than I expected. I wanted to change the institutional and structural problems, so I prepared the bill for five months.

- What is the problem?

▲ When the budget is submitted in early September, the review must be completed by early December. September is for settlement, October for the national audit, and November is the only month for budget review. During this period, the Budget and Accounts Committee holds plenary meetings, subcommittee meetings, and consultations between secretaries, but there is no physical time. Out of 8,800 expenditure projects this year, only about 1,700 were discussed. When the ruling and opposition parties request, the Ministry of Economy and Finance prepares a proposal, but the structure is such that no one knows how this proposal was made. Looking at the reduction and increase process, there are so many problems that it is questionable whether the National Assembly even has the right to review the budget.

- What are the advantages if the law passes?

▲ Even if amended, the National Assembly will not take over the Ministry of Economy and Finance's budget power. However, if the system improves, the constitutionally guaranteed right of the National Assembly to review the budget proposal will be secured. As a former public official who actively engaged in administration, I take pride in that, but public officials ultimately listen to complaints from visitors. On the other hand, lawmakers visit sites and communicate, thus being in contact with the people. If the National Assembly's budget review authority is activated, the people's voices will be more reflected in the budget than now.

Assemblyman Maeng Seong-gyu of the Democratic Party of Korea./Photo by Yoon Dong-ju doso7@

- The inclusion of duplicate reports and zero-based budgeting also draws attention.

▲ Regarding youth unemployment, the Ministry of Labor, Ministry of Education, Ministry of Land, Infrastructure and Transport, and Ministry of Culture, Sports and Tourism all have budgets related to youth unemployment. These projects are matched with local government budgets in various forms. When combined, it is a large amount, but no one knows how much it is. The United States saved 543 trillion won (429 billion dollars) over 10 years through inter-agency duplicate project reports. Zero-based budgeting means evaluating the effectiveness of projects and re-examining them from scratch. Every five years, all budget projects are evaluated, and unnecessary parts are eliminated. We had to bear unexpected social resource demands due to COVID-19. How will we support such fiscal demands? Will we continue to issue national bonds? The reason for introducing zero-based budgeting and duplicate reports is to establish a system to use money efficiently.

Member of the Democratic Party Maeng Seong-gyu./Photo by Yoon Dong-ju doso7@

- There are criticisms that this is a budget-wanbak law.

▲ This is a frame created by the ruling party, but there is no indication of which part is a stumbling block. The proposal is to include the National Assembly's opinion in the National Fiscal Strategy Meeting regarding total fiscal volume and macro review, to receive and submit opinions on each ministry's budget at standing committees, to have the Budget and Accounts Committee adjust parts exceeding limits after detailed review at standing committees, and to reflect settlement review results in the budget. How are these related to the Ministry of Economy and Finance's budget formulation authority? Introducing duplicate reports and zero-based budgeting enables the government and ruling party to do what they want, so I don't understand why it is said to be a stumbling block. In the past, the People Power Party also advocated for the permanent establishment of the Budget and Accounts Committee, strengthening settlement review, and introducing budget legality. If you keep framing it, please point out what part hinders the ruling party. (Why is it coming out now?) If you look at the bill, you will see it is not something that can be made quickly. I, who have been in government and served as deputy governor of Gangwon Province, took five months just to make the bill. Even if the Democratic Party had returned to power, this law would have been submitted. People who have much experience with budgets, such as Park Hong-geun, the floor leader of the Democratic Party, and Kim Jin-pyo, the nominee for National Assembly Speaker, all agree.