The Ministry of Economy and Finance reported the 2024 Performance Management Plan for Fiscal Projects to the 6th Cabinet meeting held on January 30, which outlines the basic direction and key
priorities of fiscal performance management this year.
In comparison with the 2023 plan focusing on building infrastructure related to fiscal project management, the 2024 plan aims to pursue creating tangible outcomes based on the achievements of the previous year.
Above all, the performance management of the 12 major fiscal projects introduced last year will continue for the second year. However, the Performance Information Board (PI Board) will be introduced, transitioning into a constant management system by carrying out performance management on a quarterly basis. In addition, on-site opinions will be further taken into account by including beneficiaries of the policy (such as people with disabilities, youth, etc.) in the Performance Management Task Force of 12 key projects, along with experts in each field.
Furthermore, in an effort to break down silos between ministries and make achievements that Korean people can actually feel their effects, a ‘Performance Management for the Multi-Ministerial collaboration Projects’ will be introduced for the first time. This system will systematically manage project performance by selecting complex issues that individual ministries find challenging to solve and turning them into collaborative projects among ministries. It will be introduced as a pilot program in 2024 and will be expanded and implemented more extensively from 2025 onwards.
Not only that, consistency among the 7 performance evaluations conducted by 6 ministries will be enhanced and the burden on the assessed ministries will be alleviated through a gradual improvement in the evaluation subjects, items, and methods. To this end, a ‘Fiscal Project Performance Evaluation Council’ will be established as a regular consultation body composed of the 6 ministries.
In terms of determining the extension of subsidized projects, project performance evaluation will be strengthened by expanding penalties for subsidies fraud. In other words, projects with a history of subsidies fraud will be restricted from receiving a ‘normal’ rating, and additional points will be awarded to those ministries which voluntarily detect the wrongdoing and make clawback efforts.
The infrastructure for performance management of fiscal projects will also be significantly expanded; project performance information database will be expanded to achieve a systematic and performance-oriented budget management, and the performance information systems of each ministry will be interconnected. The public disclosure of performance information will also be enhanced through the Open Fiscal Data system.
Please refer to the attached files.
