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
Library
NABO
NARS
(1948)
(1950)
(2003)
(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 3rd, 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
594
 the annual costs of the
 Estimation of Bill Costs &
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.
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