Sejong , Sept. 29 ( Yonhap ) - is expected to enter the South Korean government system called " PAYGo " to help ensure fiscal solvency , while working to significantly increase tax revenues , sources said Sunday.
" The Government is currently consulting the ruling party to introduce new tax principles , including the system ' PAYGo ' , during regular parliamentary session ," said an official of the Ministry of Strategy and Finance .
The system " PAYGo " is used widely in the United States and other advanced countries is that any increase in direct spending , caused by a new law or a review of law, must be offset by a decrease in expenses or increased revenues , or, which is, that a new law that requires government spending must find their own resources first before being enacted .
The move comes as a result of which is expected to mandatory spending exceeds government tax revenues , since, according to the government budget plan for next year , mandatory spending accounted for 47.2 percent of total expenses , while it is expected that the total amount of government spending reaching 51.7 percent in 2017 , due to increasing interest in social assistance , registering an average growth of 6.9 percent per year , the ministry said .
According to ministry sources , it is believed that the country's discretionary spending will grow only an average of 0.4 percent during the period 2014-2017 .
In order to help fund their own expense without seeking loans, the government is increasing its efforts to increase tax revenues , unmasking the hidden wealth and clandestine transactions and increasing the number of officials of the National Tax Service at 140, the object to assist in tax collection capacities of the Government and its ability to expose the clandestine activities of the market.
