30th '1st Subsidy Management Committee'
Choi Sang-dae "Subsidy Project Reform is a Key Task for Expenditure Innovation"
The government has decided to restructure 176 subsidy programs. This intensive adjustment was made due to overlapping issues of fraudulent claims of national subsidies and the current administration's sound fiscal policy.
On the 30th, the Ministry of Economy and Finance held the "2023 1st Subsidy Management Committee" at the Korea Fiscal Information Service in Jung-gu, Seoul, chaired by Second Vice Minister Choi Sang-dae, to review and approve the subsidy program extension evaluation plan. The subsidy program extension evaluation is a system that assesses the effectiveness of subsidy programs that have passed three years to determine whether subsidies will continue to be provided. After evaluation by a subsidy program team composed of private experts, the Subsidy Management Committee finalizes the decision.
Choi Sang-dae, the 2nd Vice Minister of the Ministry of Economy and Finance, is delivering the opening remarks at the 'Subsidy Management Committee' held on the 30th at the Korea Fiscal Information Service in Jung-gu, Seoul.
This year, a total of 278 subsidy programs were subject to evaluation. The Ministry of Economy and Finance explained, "This year, evaluations were conducted more strictly than in previous years in line with the sound fiscal policy." After the evaluation, the government decided to abolish, consolidate, or reduce 63.3% of all programs. Among these, 11 programs will be immediately abolished, and 22 programs will be phased out. This is the highest level of restructuring since the system was introduced in 2016.
This evaluation will be reflected in the 2024 departmental budget requests and is scheduled to be submitted to the Ministry of Economy and Finance by the end of this month. The specific reduction scale will be determined during next year's budget formulation process. The final results will be submitted to the National Assembly in September and then disclosed on the Ministry of Economy and Finance's website.
Vice Minister Choi emphasized, "In the current situation where fraudulent claims of national subsidies have become an issue, the maintenance of subsidy programs is a core task for expenditure innovation to secure fiscal soundness," adding, "The resources saved through restructuring will be reinvested in welfare areas for vulnerable groups and others."
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