How to Get more the National Budget- Introduction to Public Finance -

Kenneth Lee

Ministry of Strategy and Financekmlee1367@gmail.com

Prologue : START WITH WHY

Three Questions

1. Why do you at-tend this course?

2. Why do you live with your wife?

3. Why do you live in the Earth?

Simon Sinek‘s Golden circle

Some situtations

Sources : Internet web-sites

My experience about Bud-get

Working for Jeonla Northern Local Gov-ernment as a Financial Cooperation Offi-cer(FCO) for two years

What was my role in the local govern-ment?

- Being a bridge between MOSF and JNLG - Supporting the Local government in ob-

taining the national budget - Acting like as a lobbyist or a “drinking-liquor managing director”

My Strategy as a FCO

Get-ting more

Local Gov. s

Expecta-tion on

me

Knowl-edge on

Public Fi-nance

Strategic relation-ship with Office of Budget

Per-spective on my role

Problem-solving

capability

Ref. Expectation vs Reality

Pygmalion Motiva-tion Grid

Ⅱ ⅠHigh per-formance

ⅣLow per-formance

Ⅲ

exp

ecta

-tio

ns

realities

hig

hlow

low

high

Source : Alex Lowy, The Power of 2X2 Matrix, 2004

Davies J –Curve Theory

Source :James C. Davies, American Sociological Re-view, 1962. FEB.

What’s Public Finance?

Borderline between Economics and Poli-tics

Scope of Public Fi-nance

1) Public expendi-ture

2) Public revenue 3) Public debt 4) Financial adminis-

tration

R. Musgrave(1910~2007)< The Theory of Public Fi-nance > (1959)

Functions of Public Fi-nance

Efficient Alloca-tion of Society

re-sources

Stabi-lization

of Macro-econ-omy

Re-dis-tribu-tion of

Incomes and As-

sets

Three functions of conventional government

Ref. Measuring the Public sector

Public Sector General Gov-ernment

Public sector vs Private sec-tor

Market failure

Fail to deliver an efficient alloca-tion of resources by a free market.

Economic welfare may not be max-imized –the out-comes are not Pareto optimal

Ref. Mind map on Market failure

Relations National economy vs Budget

Budget cycle

Office of Budget is evaluating Central and Local Government Budget these days

How to get more national budget

Premise : Fact-findings in detail

1. Analyzing bottlenecks and problems 2. Analyzing the internal and external fac-

tors, which affects the activities relating to budget

3. Understanding about Office of Budget, including the staff, organizational culture, process of decision-making etc

4. Analyzing own role and responsibilities relating budget by using SWOT

Office of Budget’s Decision-mak-ing system

General Flow of Decision-making

Evaluation of Working level – Deputy directors + Direct0rs

Budget Evaluation Committee –Deputy Mister, Director Generals, Core directors

Committee presided Deputy Prime Minister-DPM, 2n

d

Vice Minister, Deputy Minister

Characteristics of Evaluat-ing Budget

They are “No men and women” basically.

1. Conservative stance on Requests of budget 2. They are taking into consideration the effi-

cient allocation of limited resources 3. They can attain a lot of information about

the projects, plans, policies related to re-quests

4. They have dominant and authorized power in allocating the national budget

My “SPOS Model”

Frame of ApproachStaff(S)

- Attitude -Capability- Leadership

Projects(P)

-Attractive -Relative advantage -Realistic

Strategy(S)

-Strategic thought and ap-proach-Risk management

Organizational culture(O)

-Sharing goals-Distribution of roles-Motivation and opened deci-sion-making

Epilogue

Do change right now.

Think different.

Reach your potential.

Take action audaciously and

Be a pathfinder building better world.