Next year's budget exceeds 101 trillion won

The government has appropriated 101 trillion won as budget for next year and will negotiate with the ruling party. It represents an increase of 6 trillion won from this year and will hit a record amount of budget.

The Ministry of Planning and Budget submitted 2001`s budget plan to the ruling party. The budget plan features that the installation of electric Honam Line will begin next year and investments will be made to building regional airports in Yang Yang, Kangwon Province, and Mooan, South Cholla Province. Also, 1.84 trillion won will be used for medical reform, which is associated with separation of dispensary from medical practice.

However, overall investment in social overhead capital (SOC) sector is expected to reduce substantially and the temporary expenditure for public works and other projects designed to overcome the foreign exchange crisis will be slashed by as much as 1.5 trillion won.

The budget plan will be submitted to the National Assembly by October 2 after a screenign process by the ruling party, a consultation meeting among mayors and governors and the Cabinet meeting.

The Ministry of Planning and Budge said that tax revenues will increase by 16-17 trillion won next year through strengthened taxation against illicit gains and brisk economic activities. It also intends to reduce the issuing of national bonds by 3-4 trillion won in order to lower the loss ratio of integrated national finance to 1.5% of the nation`s GDP from the current 3.4%.

Considering to the fact that the government has greatly increased investment in SOC projects as part of efforts to boost economy and to tackle the question of unemployment, the SOC investment will be adjusted to a proper level.

Projects with the highest investment effect will get financing with priority. As for expressway, the Taejon-Jinju route of West Coast Expressway will be completed and investment for installation of electric train will be made. Electric train work on Honam Line will begin next year and operation of high-speed train on the route will be completed from 2004.

Construction of Yang Yang Airport and Taegu Airport expansion project will be completed in 2001. Muan Airport will also be completed in the year 2002.

The government will set aside 374.9 billion won for water quality improvement project of four major rivers and 290 billion won for waste water treatment.

In the fields of culture and tourism, south coast tourism belt project would cost 50 billion won, while development of northern Kyunggi Cofucianism culture and Kaya history-culture would cost 23 billion won and 21 billion won, respectively.

In productive welfare sector, the government will support 2.47 trillion won for living expense of low-income family. Also, it will pay medical expenses of expensive bills up to 7,000 patients who are suffering from chronic kidney failure and other illnesses. The public work projects will be reduced on a gradual basis, considering the trend of unemployment rate.

For investment in education, the government plans to invest 19.32 trilloin won to support regional finance for education to improve the environment for elementary and middle schools. Also, it set aside 170 billion won to promote research-based graduate school education programs and 60 billion won for reform of college education.