Legislative Cost Estimation Systems in South Korea and the U.S.

This entry aims to enhance the legislative cost estimation system in South Korea by conducting a comparative analysis with the Congressional Budget Office (CBO) in the United States. The analysis reveals significant structural divergences between the two systems. First, the US system operates under binding fiscal rules like PAYGO, whereas the South Korean system functions primarily as an informational tool. Second, a severe workload imbalance exists; South Korean analysts at the National Assembly Budget Office (NABO) handle approximately 12.7 times more estimates annually than their US counterparts, placing a substantial burden on personnel. Third, unlike the US, South Korea lacks institutional mechanisms to alleviate this workload or enforce the utilization of cost estimates. The findings suggest that expanding NABO’s analytical workforce and institutionalizing the linkage between cost estimates and legislative decision-making are essential for improving fiscal efficiency.