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Next year's gov¡¯t budget may hit 100 trillion

Posted September. 01, 2000 15:22,   


The government is planning to increase the 2001`s budget to 101 trillion won, up six trillion won from this year`s 95 trillion won.

To accelerate the public sector reform, the government intends to link the budget with public sector reform by slashing the labor cost of employees at state-funded organizations who are supposed to be laid off.

Jeon Yun-Churl, Minister of Planning and Budget said: "Next year`s budget will focus on soundness of finance and the government curve the budget increase rate at 6% which is lower than projected economic growth rate of 8-9%.

In this connection, the Ministry of Planning and Budget has decided to cut the total amount of national bonds to be issued next year to 3-4 trillion won from the originally planned 7 trillion won. Also, it is expected to slash the deficit of integrated finance from 3.4% this year to 1.5% next year in order to realize a balanced finance in the year 2003.

Jeon reported such a plan for next year`s budget and for reform schedule for the public sector reform to President Kim Dae-Jung. The government budget plan will be finalized in late September through party-government consultation and screening by the cabinet meeting.

"The government plans to increase the budget for aide to North Korea in order to support the normalization of South-North Korean relations, however it wouldn`t affect the budget for the national defense sector," said Jeon.

Park Won-Jae parkwj@donga.com