Education grants 76trillion-won-linked structure overhaul sparks conflict within government
The Budget Office and the Ministry of Education differed over restructuring the automatic allocation system for education grants worth 20.79% of domestic tax revenue and 76trillion won, which is linked to it, from 7month 8to9day. Discussions also included restructuring the basic pension and the Future Response Fund, drawing attention to whether they will be reflected in the budget proposal.
The Budget Office and the Ministry of Education presented differing positions on 7month 8day and 9day regarding the restructuring of the education grant allocation system. The two sides disagreed over whether to revise the current allocation method linked to 20.79% of domestic tax revenue.
The Budget Office expressed a position to the effect that the automatic allocation structure should be revised. The Ministry of Education maintained that reductions in education grants are unacceptable.
The total scale of education grants is known to be approximately 76trillion won, while the linked benchmark rate is 20.79%. The dispute over this rate is being cited as the key issue.
It was reported that discussions are also under way within the National Assembly on reforming the basic pension according to the principle of providing less to those with greater means and more to those with fewer means. Some political figures called for abolishing the system linking education grants to a specified index.
Meanwhile, regarding the Future Response Fund during the same period, a position was expressed that it was not being created for a particular region, industry, or project. The president said Mongolia’s mineral resources and Korea’s technology and manufacturing would be made supply-chain cooperation partners.
There is speculation that these discussions could lead to further consultations and adjustments during the budget preparation process. No final reform plan or implementation date has been disclosed so far.