[“DBAS with Transparent Veins for flows of Finance”]
To cut this ‘Gordian Knot’, the Digital Budget and Accounting System (DBAS) integrates all the existing financial systems and provides “transparent veins” of public finance.
The DBAS is an innovative tool that manages the entire fiscal process, ranging from budget formulation to accounting, and integrates fiscal information by linking fiscal information of all public entities. The system is also known as “dBrain,” because of its function as the digital brain for fiscal management.
The most distinctive feature of the DBAS is that it allows a holistic view of public finance. It consolidates fiscal processes of 44 central government agencies and links 63 external systems and local governments, public entities and subordinate organizations, fulfilling the requirements of the IMF’s 2001 Government Finance Statistics (GFS) Manual.
The system further reinforces risk managing capacity by enabling real-time information sharing in public finance, such as revenues, expenditures, national assets and public debts.
The system also introduced the unique mechanism named ‘Project Management System (PMS)’ in order to manage all the government activities. Through the PMS, all government activities were aligned to 700 programs and 8,000 projects according to the purposes of their policies, which prevents overlapping and waste of the budget. All the information including the project details, budgets, execution progress and procurement status from external systems are gathered in the PMS on a project basis so that Project Managers can simply log on to the PMS to monitor their project status and perform all their duties. This sub-system holds public servants accountable and has simplified their work process.
The third attribute is that all fiscal processes are now conducted online. The Electronic Bill
Presentment and Payment (EBPP) system electronically processes all the steps of government revenue from notification to final payment. Even traffic violation fines are stored in the database of the DBAS the moment a policeman offers a ticket to a driver. On the other hand, the Electronic Funds Transfer (EFT) system transfers money directly to vendors’ bank accounts for any government expenditure. Thanks to these systems, public servants do not have to directly receive or give cash, which leaves little chance of embezzlement. Currently, 400,000 transactions worth 5.7 billion US dollars in public budget are made every day to serve their original purpose in a transparent and seamless manner.
Lastly, the DBAS has enhanced the government’s credibility by publishing seventy types of financial information on the website. Therefore, every Korean citizen can easily see what happens in public finance.
In conclusion, due to the DBAS, Korea has improved competence, transparency and efficiency on its financial management. Eventually, the leakage of resources caused by bureaucracy are dramatically reduced and relocated to the welfare programs for social minorities such as women, children, migrants and the vulnerable. That is the reason why the World Bank mentioned the DBAS as one of the ideal FMIS models.