Education grant reform76trillion won reform clash, domestic tax revenue20.79% linkage revision debate
The Budget Office and the Ministry of Education7month 8day clashed over revising the automatic allocation structure for education grants, which is linked to “domestic tax revenue20.79% linkage,” on 76trillion won, and 7month 9day, political circles also called for abolishing the linkage system.
The Budget Office and the Ministry of Education7month 8day clashed over revising the “domestic tax revenue20.79% linkage” structure for education grants. The subject of the debate is education grants worth approximately 76trillion won.
The Budget Office raised the need to revise the automatic allocation structure. Specifically, it holds that the domestic tax revenue linkage method should be changed to increase flexibility in budget execution.
The Ministry of Education opposed reducing the linkage structure. It cited the possibility that this could undermine the stability of education finances.
7 month 9day, National Assembly member Park Hong-geun called for abolishing the education grant linkage system. On the same day, Park Hong-geun also stated that the Future Response Fund should not become a fund for specific regions, industries, or projects.
7 month 9day, the president stated that Mongolia’s mineral resources and South Korea’s technology and manufacturing would be made supply-chain cooperation partners. The remarks on cooperation with Mongolia concern a separate matter of diplomatic and resource cooperation.
The two sides have maintained parallel positions through this day. Whether an agreement will be reached and the schedule for reviewing the forthcoming budget bill remain matters for further discussion.
Official announcements from the relevant institutions and the results of discussions in the National Assembly are continuing. Investors should check government announcements.