Korea’s bold initiative, the Green Growth Plan (GGP), spanning 2009 to 2013 with fiscal outlay of US$84 billion, posed a significant challenge to sustainable public finance management in Korea. This paper reviews how Korea accommodated the huge cross-cutting expenditure plan in its annual and medium term budgets. Notably Korea’s medium term expenditure framework, the National Fiscal Management Plan, enabled the Ministry of Strategy and Finance’s Budget Office to integrate the GGP into the budget and maintain fiscal balance. However, the paper also notes that Korea’s experience suggests international standards on budget classification to be updated to accommodate government-wide initiative.
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