"Unfair payment of 250 billion won in state subsidies to the 'Paper Budget' of the National Assembly"

In the process of handling the government's New Year's budget, state subsidies were unfairly paid more than 250 billion won due to the so-called "paper budget," a practice in which lawmakers insert civil service projects in their districts.

In its audit report, the Board of Audit and Inspection said that 252 billion won in state funds has been set aside from 2021 to this year for 20 local transfer projects that are not subject to state subsidies, such as support for the construction of a cultural center and support for sports promotion facilities.

Thirteen of the cases of unfair government subsidies caught this time were cases where local governments demanded subsidies through their offices, and seven projects were organized independently by the offices of lawmakers.

In particular, the Board of Audit and Inspection pointed out that the budget for these projects was organized at the end of each year at the end of the National Assembly's budget bill, and the feasibility was not properly reviewed, and it is currently difficult to carry out normal projects.

He explained that the main problem is that the enforcement ordinance of the subsidy law clearly defines the distinction between projects that can and cannot be funded by state funds, leaving room for arbitrary interpretation and operation.

Accordingly, the Board of Audit and Inspection notified the Ministry of Strategy and Finance to come up with a plan to reorganize the details of local transfer projects so that they can be clearly distinguished in the Enforcement Decree of the Subsidy Act.