National Assembly Republic of Korea An Introduction to The National Assembly Budget Office February 2010
Inception and Development Inception and Development The National Assembly has established four support organizations. National Assembly Secretariat, National Assembly Library, National Assembly Budget Office (NABO), and National Assembly Research Service (NARS) Speaker of the National Assembly Secretariat (1948) Library (1950) NABO (2003) NARS (2007) 2/17
Inception and Development (cont.) NABO was established in October 2003, to enhance the National Assembly s efficiency keeping the government in check and monitoring the operation of national finance. Dr. Shin, Hae-Ryong (the 3 rd, Current Chief) Legal Basis The National Assembly Act: Article 22 (2) The National Assembly Budget Office Act: (July 18, 2003) 3/17
Organization NABO is composed of Four Divisions Budget Analysis Division Economic Analysis Division Program Evaluation Division Planning and Management Division Seventeen Teams 4/17
Organization Chart Chief Planning & Management Division Budget Analysis Division Economic Analysis Division Program Evaluation Division Budget Analysis Counsel Human Resources Management Economic Budget Analysis Economic Policy Analysis Economic Program Evaluation Planning & Cooperation Industrial Budget Analysis Macro Economic Analysis Industrial Program Evaluation Social Budget Analysis Fiscal Policy Analysis Social Program Evaluation Administrative Budget Analysis Tax Analysis Administrative Program Evaluation Bill Cost Estimates 1 Revenue Estimation Bill Cost Estimates 2 5/17
Function NABO conducts and carries out Research and analysis on budget bills, settlement of accounts, fund operation plans, and settlement of funds. Bill cost estimations for bills that require the implementation of the budget or funds. Analyses and produces outlook reports on the operation of state finances and macro economic trends. Analyses and evaluations of major government programs and analyses of mid to long-term fiscal demands. Studies and analyses in response to requests by the National Assembly Standing Committees and Assembly Members. 6/17
Financial and Human Resources Budget 12.7 Million US Dollars for FY 2010 Human Resources 105 staff 38 Ph.D. holders in fiscal policy, economics, statistics, public administration, accounting, law, etc. 2 CPAs (certified public accountant) 7/17
Appointment Process Chief of NABO The Speaker of the National Assembly appoints the Chief of NABO, with the consent of the Steering Committee, after recommendation made by the Committee for Recommendation of the NABO Chief. Other Staff The Chief appoints Staff solely based on competence without regard to political affiliation. 8/17
Use of Outside Consultants NABO s Panel of Advisers NABO operates a Panel of Advisers composed of less than 20 outside fiscal and economic experts, from research institutions, government agencies, academia and the media (currently 15 experts). Outside Consultants Each Division operates its own Advisory Group composed of outside consultants. 9/17
Output of FY 2009 107 Publications of Analysis Reports Major Reports of NABO 10/17
Output of FY 2009 (cont.) 1,711 Provision of on-demand Research and Analysis Reports: 1,117 Fiscal Research and Analysis Reports 594 Bill Cost Estimates 11/17
Scrutinizing the Effectiveness and Efficiency of Specific Government Programs NABO conducts un-biased evaluations of major government programs and policies, performance management of government agencies, and offers ideas for improvement. Also, through a mid to long-term fiscal demand analysis of major fiscal programs, it provides support for more sizable, and better planned fiscal operations. NABO provides sound feedback on the government s activities and assists the National Assembly s supervision of the administration, thereby contributing to the desirable progress of major policies and programs. 12/17
Costing Proposed Legislation NABO estimates the annual costs of the following five years after a bill is enacted, and the costs each related party must bear if the bill is passed. The estimation of related costs leads to discussions on how to fund the bill, thereby enabling more in-depth bill deliberation. 594 Estimation of Bill Costs & Tax Revenues 13/17
Reviewing the Economic Assumptions for the Budget, Fiscal Risks, etc NABO forecasts Annual and Mid-term Economic Outlook. NABO estimates Tax revenues based on its macroeconomic outlook, and analyzes the direction for state expenditure. In addition, it reviews the government s fiscal balance and liabilities, and the feasibility of the government s five-year National Expenditure Plan and National Liability Management Plan. Studies are also carried out on major economic policies that affect state finances, namely policies on ageing, growth potential, finances, employment, and industry. 14/17
Relationship with the Budget Committee and Other Committees Special Committee on the Budget and Accounts NABO reports are used as basic data necessary for the legislative activities. Strategy and Finance Committee NABO provides a national tax revenue outlook to this committee. This report helps to ensure sound fiscal management of the state. 15/17
Relationship with the Government NABO Requests information after confirmation of Speaker of the National Assembly. Good News! NABO obtained the right to request National Tax Statistics after the amendment of 2009 the National Tax Framework Act. 16/17
More Information Visit the NABO Website! History Mission Role and Responsibilities Organization Summary of All Publications! (in English) http://korea.nabo.go.kr 17/17
Thank you for attention. We hope you have a great day. Republic of Korea