Challenges and Alternatives in Budgetary ‘Transferred Use’ and ‘Re-appropriation’

This study examines the legal and institutional constraints and alternative approaches related to ‘transferred use’ (legislative subjects) and ‘re-appropriation’ (administrative subjects) within South Korea’s program budget system. It proposes integrating key fiscal terms—division, group, program, and sub-program—into the National Finance Act (NFA) to streamline budget classifications and reduce confusion. The study emphasizes the distinct roles of the National Assembly (NA) and the Ministry of Economy and Finance (MOEF) in the budget review process, whereby the NA reviews budget classifications at or above the program level (such as divisions, groups, and programs), while the MOEF manages allocations below the program level. Furthermore, the paper suggests revising the NFA to accommodate cross-agency projects and national priorities, ensuring that budgeting and deliberation align with the program-level structure. These changes aim to clarify authority, enhance transparency, and improve the overall efficiency of fiscal management.