Gov¡¯t to spend bulk of budget in first half of 2001

Roughly 63% of estimated government expenditures for next year (65% of general accounts and 60% of special accounts) are likely to be spent in the first half of 2001.

Of the total national budget, which amounts to 160.3 trillion won, 101.1 trillion won is scheduled to be allocated in the first half (Jan.-Jun.), and the remaining 59.2 trillion won in the second half (Jul.-Dec.) of the new year.

At a Cabinet meeting Friday, the government reaffirmed the budget apportionment and funds plan for 2001 and said its aim was to help the nation overcome the current economic downturn.

The Planning and Budget Ministry announced that it worked out the plan with the aim of promptly strengthening the marketplace. The government decided to allocate 61.2 trillion won, 65% of the general account (94.1 trillion won) in the first six months of 2001 and also advanced the schedule for spending 39.9 trillion won, 60% of the special accounts (66.2 trillion won) in the first half.

The government decided to spend about 30.1 trillion won, 86% of the annually apportioned budget of 34.9 trillion won, on major investment plans, including social overhead capital (SOC) projects, in efforts to boost market activities.

As for efforts to support small- and medium-sized companies & venture businesses, about 1.9 trillion won is scheduled to be spent. About 300 billion won will be injected into efforts to counter unemployment, such as public works projects.

In the mean time, labor costs and basic business expenses will be allocated equally by quarter. The government also made it a rule to allocate money only to excellent reform performers in the public sector.

The government used to apportion about 50-60% of the national budget in the first half. It allocated 67% of the budget in the first six months of 1999 to overcome the foreign exchange crisis.