Korea’s Fiscal Reforms in Recent Years

Medium-termFiscal Management

Plan(Upper-level)

Autonomous Total Budget Allocation(Autonomy)

PerformanceManagement(Accountability)

(Lower-level)

Efficiency

Sustainability

Transparency

MTEF

Performance

ManagementTop-down

1) Based on FY2017 figures 2) dBrain is Korea’s own Digital Budget & Accounting System (DBAS) and the ‘d’ stands for digital

5-year Medium-term Expenditure Framework (MTEF)

$351 billion Budget Request Review & Adjustment

Average Daily Treasury Funds $7 billion transfers

and $3.5 billion receipts

Manages 2,136 Fiscal Programs and 5,184 Performance Indicators

Prepares 768 Settlement Reports

Budget Formulation

Budget Execution

Performance Evaluation

Accounting & Settlement

Asset & Debt Management

$1,643 billion total assetsand $1,137 billion total debts

National Fiscal Management Plan

24 hours 365 days

Total # of dBrain Users

15,689

User Traffic

76,258

* Daily average figures as of Oct. 2018

Disaster Recovery Center

▪ Server : 23▪ Network : 21▪ Security : 19▪ Storage : 5

Daejeon

NIRS (Daejeon)

NIRS (Gwangju)Seoul

* KPFIS : Korea Public Finance Information Service* NIRS : National Information Resource Service

Gwangju

KPFIS (Seoul)

$7.6B $3.2B

Daily Operation Index

530,000 1,436

RevenueCollection

CasesExpenditure

TransfersUser Calls

Main Data Center

▪ Server : 102▪ Network : 53▪ Security : 73▪ Storage : 10

• Line ministries & funds financial activities integrated

• Interface & linkage with external systems (Broader scope of fiscal statistics)

Real-time Treasury Fund Management

Integration & Interface w. External Systems

Program-based Online Work Process

• Accumulate all PFM related data online

• Easier monitoring of projects via online platform

• Efficient treasury fund management via EBPP & EFT

• Prevent corruption and fraud

Performance-basedFiscal

Management

Strategic Resource Allocation

Facilitate performance-based fiscal management feed-back cycle

Real-time

Online

Integration

& Interface

Daily Updates on Execution Detailed Project Descriptions

Complete renewal in January 2018 expanded scope and update frequency of budget allocation, execution, project info

Strengthened two-way interactive communication with citizens → Virtuous Circle of Fiscal Information Use

Ahead of User Interests

Proactive research and analysis via big data analysis

User-Provider Communication

Feedback loop of request-review-application

Customized Data Service

Provides processed data to user-needs per request

StrongInteractive

Communication

User Open Fiscal Data

InteractionBoost

Keywords Analysis ReportsOpen

Fiscal Data

Specific Data Request

Process& Provide

Data

1 2 3 4

Portals, news, blogs, etc.

Scattered information throughout various government websites are consolidated while linking with global economic and fiscal statistics

Consolidated Fiscal Info Linkage w. Global Stats

Public Finance Research

Local Government · Subsidies

Government Agencies

Economic · Fiscal Stats

Ministry of Interior & SafetyMinistry of National Defense

Ministry of EducationNational Tax Service

National Policy Agency

Improved User Experience and Usability of Fiscal information

Citizens /

Researchers

• Better management of fiscal risks and fiscal sustainability

• Proactive and timely response to potential global financial crisis

• Improved accountability in policy implementation

• Enhanced work capability via real-time monitoring

• Effective performance analysis tool for each policy activity

• Improved efficiency in budget & settlement reviews

• Enhanced monitoring capability for the public

• Budget waste reduction

• Customizable info at-hand

Higher Efficiency / Transparency / Fiscal Data Utilization

Line

Ministry

National

Assembly

Fiscal

Authority

PB Projects in the 2019 National Budget

Simple idea

proposed by citizens

Proposal selection &

development by experts

Turn into Reality!

‘Wheelchair Accessible Bus’ project selected

US$1.18 million added in the 2019 National Budget

Citizen’s simple idea can be developed into a national project