Public Inquiry and Fiscal Discipline - An Assessment on Performance of the Preliminary Feasibility Study in Korea -

서지정보

· 발행기관 : 한국경제발전학회
· 수록지 정보 : 경제발전연구 / 22권 / 4호 / 99 ~ 127페이지
· 저자명 : 허석균, 박창균

초록

Since its introduction in 1999, the preliminary feasibility study (PFS) has been evolved to firmly establish itself as a social institution in Korea. It now serves the society as a focal point for public inquiry into budgetary expenditure programs on social overhead capital. We examine the performance of the PFS for the last 15 years focusing on its role as the bulwark of objective and independent budgetary decision makings. Thirty-five percent of large scale government expenditure projects evaluated by PFS were announced to be fiscally unjustifiable and abandoned. That is, more than 102 trillion KRW were saved due to rigorous screening by the PFS between 1999 and 2012, amounting to thirty-eight percent of total project costs of all projects examined by PFS during the same period. In addition, the PFS has contributed to enhancing fiscal discipline by insulating budgetary decision making process from external risk factors such as political pressure. The global financial crisis in 2008 provided a good opportunity for advocates of fiscal expansionism to extend their territory. Accordingly, both the number and total size of government expenditure projects proposed by the government ministries have been sharply increased. However, the PFS played an important role in keeping fiscal soundness by preventing inefficient or unnecessary project from being executed even in the face of unfavorable atmosphere prevailed during the turbulent times after the global financial crisis

참고자료

· 없음