Benevolent policies and structured inefficiencies are behind the rapid deterioration in Korea's fiscal health. Over the past five years, Korea's general government debt-to-GDP ratio has increased at the fifth fastest rate among 37 developed countries, which stands in sharp contrast to the trend of most developed countries reducing their debt. In particular, the supplementary budget, which was overused due to political logic, became a catalyst for pushing the national debt ratio above the dangerous line of 50%. What is even more serious is that this increase in debt is not a temporary phenomenon, but a structural problem coupled with demographic changes and explosive increases in welfare spending. Now, it is not a stopgap measure to simply cut the budget, but fundamental reform that resets spending priorities is urgently needed.

The expansion of basic pension and health and welfare budgets due to the rapid increase in the elderly population is the biggest detonator of financial pressure. According to an analysis by the National Assembly Budget Office, if the current basic pension system is left as is, the related financial requirements in 2035 are expected to exceed 44 trillion won, and the total budget for senior support projects is expected to approach a maximum of 80 trillion won. However, unconditional expansion of payment targets is a fatal poison to finances. A 'low-low-low-low-low' approach that provides deep support to the lower income class but adjusts the overall scope of supply and demand, or a plan to gradually raise the pension age to 68, is emerging as a key card for financial savings. In the end, the value judgment issue of ‘how to make the system sustainable’ should be made public rather than ‘to whom to give more’.

Inefficiencies in budget execution are clearly evident in the rural sector. The reality that hundreds of billions of won worth of budget is not used or carried over every year proves the incompetence of the administration, which cannot properly deliver even the secured financial resources to the field. In particular, infrastructure projects for rural and fishing communities are either over-organized in excess of demand or designed to focus on conventional civil engineering projects, which are disconnected from the actual lives of farmers. Experts agree that the agricultural special tax, which is a purpose tax, should be incorporated into general accounting and managed flexibly, and that a strict prior verification system should be introduced to filter out patronizing businesses. We must break away from the old way of thinking that budget increases lead to increased support, and instead pursue innovation that maximizes execution efficiency.

The education field is also facing the sanctuary of ‘local education financial grants’ that have been in place for over 50 years. Despite the sharp decline in the school-age population, the structure in which a certain percentage of national taxes are automatically distributed to offices of education has resulted in the overflowing education budget being wasted. The Ministry of Planning and Budget is pushing for mandatory expenditure restructuring and attempting to reallocate education grants, but a huge wall of opposition from the education community is standing in the way. However, the current structure in which investments for future generations are concentrated only in elementary and middle school education, leaving the higher and lifelong education sectors excluded, clearly needs to be improved. In the end, restructuring spending without sanctuaries and cutting off new projects in advance are unavoidable tasks of the times to direct limited national financial resources to the most productive areas.