Organizing 20 local transfer projects from 2021 to this year
13 cases were confirmed as cases of ‘message budget’ through the National Assembly Office
During the National Assembly’s budget deliberation process, an audit by the Board of Audit and Inspection revealed that about 250 billion won in national funds over four years had been unfairly allocated to local transfer projects for which government subsidy payments were prohibited. It appears that the so-called ‘message budget’, in which members of the National Assembly insert local district complaints-related projects when processing the government budget, has become a problem.
On the 26th, the Board of Audit and Inspection announced in its audit report on ‘State of National Treasury Subsidy Arrangement and Management’ that 20 local transfer projects that are not subject to government subsidies, such as support for the construction of a cultural arts center, support for sports promotion facilities, and development and creation of cultural and tourism resources, will receive 2,520 government funds from 2021 to this year. It was confirmed that billions of won had been allocated.
In particular, 13 of the 20 projects in which government subsidies were unfairly paid were cases in which local governments requested an increase in the budget for long-awaited projects through the National Assembly member’s office.
In 2005, the government revised the Enforcement Decree of the Subsidy Act to distinguish between government subsidy projects and local transfer projects to promote local decentralization. Accordingly, projects in the cultural, tourism and sports fields were excluded from receiving government subsidies.
However, during the New Year’s budget processing period, the ‘message budget’, in which members of the National Assembly insert budgets for local projects that are not reflected in the government budget at the last minute of the budget deliberation process, became widespread, and the Ministry of Strategy and Finance announced 20 related budgets from 2021 to this year. It was agreed to increase the project amount during the National Assembly deliberation stage.
A representative example is the construction of the Gangwon-do Opera House, for which 100 billion won of national funds was allocated this year. The Ministry of Strategy and Finance increased the budget in December of last year after requesting Gangwon-do to provide space for cultural content creation and production companies in order to allocate the budget, but there were no plans to build related facilities as of June this year, when the audit was conducted.
The Cheonan Bonjour badminton court construction project, which is being built in Cheonan, South Chungcheong Province, was allocated 9 billion won in national funds this year due to complaints from local clubs. Last October, an acquaintance of the Badminton Association’s president delivered project data to the National Assembly’s office, and the budget was later increased.
In addition, for the Pyeongtaek Yongjuk District Sports Center construction project, for which 9 billion won in national funds was allocated this year, and the Handeulmulbit City youth sports facility installation project in Asan, South Chungcheong Province, for which 900 million won in government funds were allocated, local government officials confirmed the budget allocation through media reports and political party banners. Prepared a business plan. As a result of the audit, it is unclear whether the two projects will secure a business site or pass the local financial investment review, so the progress of the projects is uncertain.
The Board of Audit and Inspection told the Minister of Strategy and Finance, “For projects for which no budget has been provided among the 20 projects, measures will be taken in accordance with the provisions of the National Treasury Subsidy Prohibited Projects of the Enforcement Decree of the Subsidy Act, and the national budget will be allocated to local transfer projects excluded from government subsidy support.” He instructed, “To prevent any problems, thoroughly carry out related work, including effectively exercising the government’s right to consent to an increase,” and “Develop a plan to link the system.”
In addition, the Ministry of Land, Infrastructure and Transport was notified to “prepare legal action plans against subsidized business operators who received both subsidies and research and development expenses.”
