Issue Focus

● The government's construction investment is contributing greatly to the development of the construction industry and job creation as a means of responding to the economic contraction. Therefore, in order to present the correct policy direction at the national level, the work of identifying the exact size of the government's construction investment must be preceded. This paper proposed a 'facility project budget (hereinafter referred to as facility project cost)' as an index that can most objectively analyze the degree to which construction companies actually feel the effect of the government's construction investment. - Most of the preceding studies related to construction investment focused on the SOC budget by measuring the size of construction investment. However, if you look closely at the detailed items of the SOC budget, it is highly likely that the size of the government's construction investment will be measured smaller than it actually is, including items that are less related to construction costs such as R&D contributions, business operating expenses, and job performance expenses. - On the other hand, the facility project cost, which refers to the total budget required to secure facility objects, consists of 'land purchase cost, design cost, supervision cost, construction cost, auxiliary cost, etc.' and measures the actual economic activity of the construction industry the closest. In other words, facility project cost is the most objective indicator to analyze the degree to which construction companies actually feel the effect of the government's construction investment. ● During the analysis period, the SOC sector's budget and settlement size remained constant without significant change in both the central and local governments, and as a result, the proportion of SOC sector budget and settlement amount in the total budget and settlement amount decreased. ● In the case of facility project costs by budget and settlement of accounts, the central government shows a rebound after a decrease, while the local government shows a continuous increase. The proportion of the budget and settlement of facility project expenses to the total budget and settlement amount fell in both central and local governments. ● Unlike other items, the central government's facility project cost was found to be smaller than the budget. Local governments accounted for a particularly large difference in the budget and settlement of accounts in the SOC sector compared to the difference in the budget and settlement of accounts in other fields, while the settlement amount was derived smaller than the budget in all fields. - Through this, it was discovered that a large amount of insolvency and differences in deposit and settlement occurred every year in facility project costs, leading to a decrease in the effectiveness of the public sector's construction investment effect. ● It is necessary to maximize the effectiveness of construction investment by improving the effectiveness of government construction investment as construction investment to achieve economic growth is insufficient due to internal and external environmental changes. ● This report aims to comprehensively analyze the size of SOC budget and settlement, facility project cost budget and settlement, and the size of the difference between budget and settlement represented by insolvency by region and ministry, and to accurately grasp the actual size of construction investment by the central government and local governments and use it as a prior study and basic data to suggest the correct construction investment policy direction that does not deviate from reality.