Market-Led Approach to Key Mgmt. of State Finances
Experts have urged the government to change the way it manages state finances from a government-led strategy to a market-based approach.
The recommendations came out of a government-sponsored forum held Monday on national financial management from 2008 to 2012. The forum was hosted by the Ministry of Strategy and Finance and the Korea Development Institute.
Participants urged the government to employ market solutions, using tax cuts to spur domestic demand and encouraging companies to strengthen their competitiveness to enhance market vitality.
But to prevent market failures in a market-led economy, they called for continued government investment in social infrastructure, research and development, education and social welfare.
Experts also urged the government to ease economic burdens on the public through tax cuts and tax reform. They added that the government should maintain expenditure growth similar to current economic growth levels.