2024-06-04 12:14:36
The Board of Audit and Inspection introduced on the 4th that the Moon Jae-in administration distorted the projected nationwide debt ratio for 2060 by decreasing it by 72 proportion factors when saying the long-term fiscal outlook for 2020. With a view to decrease the nationwide debt forecast, the federal government deliberately used an incorrect calculation methodology to decrease the nationwide debt to gross home product (GDP) ratio in 2060 from 153% to 81%.
In keeping with the Board of Audit and Inspection, Hong Nam-ki, Deputy Prime Minister and Minister of Technique and Finance, who was the pinnacle of the economic system on the time, even urged a calculation methodology to decrease the forecast for the nationwide debt ratio in 2060, telling the Director of the Finance Innovation Bureau of the Ministry of Technique and Finance to “make the nationwide debt ratio in double digits.” This ratio, which serves as a ‘nationwide debt warning gentle’, has been distorted. Some Blue Home officers throughout the Moon Jae-in administration are already on trial on prices of manipulating nationwide statistics akin to housing costs, employment, and earnings. Because the Board of Audit and Inspection can not self-discipline Deputy Prime Minister Hong, who has already retired, it notified the Ministry of Technique and Finance to maintain personnel information for future public workplace appointments.
● 靑 “It’s prone to solely trigger social controversy”
In keeping with a report launched by the Board of Audit and Inspection on the third, working-level employees from the Ministry of Technique and Finance’s Monetary Innovation Bureau ready a daily report back to the Blue Home on July 7, 2020, stating, “The nationwide debt ratio will exceed 100% by 2060.” Former Deputy Prime Minister Hong reported this on the common report chaired by former President Moon the following morning.
Nevertheless, on the day of the common report, the Blue Home despatched a doc summarizing the Blue Home’s opinions on every agenda merchandise to the Ministry of Technique and Finance. The doc is claimed to include the next: “It isn’t important, however could solely trigger social controversy,” and “In a state of affairs the place the inhabitants construction and socioeconomic paradigm continues to vary, we hope that you just handle it properly and take care to stop pointless controversy from rising.”
Afterwards, working-level employees from the Ministry of Technique and Finance reported to former Deputy Prime Minister Hong a draft undertaking predicting the nationwide debt ratio in 2060 to be ‘minimal 129.6% and most 153%.’ Then, former Deputy Prime Minister Hong mentioned, “The persons are anxious,” and ordered “Make it double digits,” public officers who have been current on the time instructed the Board of Audit and Inspection.
The Board of Audit and Inspection revealed that former Deputy Prime Minister Hong additionally instructed, “Assume that whole authorities expenditure will increase on the similar fee because the financial progress fee yearly.” The federal government’s whole expenditure is split into ‘necessary expenditure’, which have to be spent based on regulation, such because the nationwide pension, and ‘discretionary expenditure’, the size of which the federal government adjusts based on coverage implementation. Former Deputy Prime Minister Hong mentioned on the time that the debt ratio ought to be calculated on the premise that whole expenditures, which embody necessary expenditures plus discretionary expenditures, would enhance on the similar fee because the financial progress fee. For former Deputy Prime Minister Hong’s speculation to be appropriate, his successor governments needed to cut back discretionary spending vital for coverage implementation as necessary spending elevated. Nevertheless, the Board of Audit and Inspection introduced that at the moment, it was anticipated that necessary authorities spending would enhance sharply, together with a rise in nationwide pension funds as a result of growing older inhabitants.
As well as, the Ministry of Technique and Finance’s fiscal innovation overview officer objected, saying, “It isn’t affordable to create a piece the place discretionary spending decreases,” however the Board of Audit and Inspection defined that former Deputy Prime Minister Hong didn’t settle for it, saying, “The federal government can do it with will.”
In the long run, the Ministry of Technique and Finance working group modified the calculation methodology and created a remaining plan that decreased the nationwide debt ratio in 2060 to 81.1%. The ultimate draft was introduced in September 2020 after a report back to the Blue Home and delivered to the Nationwide Meeting.
● Working employees, “I don’t need to put out a press launch with my title on it.”
The Board of Audit and Inspection decided that the Ministry of Technique and Finance knew that the calculation methodology was incorrect. Ministry of Technique and Finance working-level employees mentioned, “We don’t need to challenge a press launch earlier than saying the forecast in September 2020. The Board of Audit and Inspection additionally confirmed that messages have been exchanged, saying, “I really feel ashamed.”
This audit additionally revealed that the Ministry of Technique and Finance abused exemption measures by accepting 63 out of 64 requests for preliminary feasibility examine exemption from every ministry from 2014 to 2022. The Board of Audit and Inspection identified that the quantity exempted from pre-tax funds elevated considerably from 2.7 trillion received in 2016 to 17.6 trillion received in 2017.
Reporter Ko Do-ye [email protected]
Sejong = Reporter Kim Do-hyung [email protected]
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2024-06-04 12:14:36