Next Year Budget Demanding 128 Trillion Won

The 2002 budget demanded by the government offices was totaled 128 trillion 241.4 billion won, increasing 28 trillion over the budget of this year.

The Ministry of Planning and Budget (MPB) announced ``2002 Budget Demand of 52 Central Government Offices``, and told that the government must cut off about 20 trillion won.

The contrast between the government offices who demanded the increased amount of budget and the MPB who is trying to achieve the balanced finance from 2003 will evoke some discord.

▼Large-Scale Increase in Local Health Insurance and Basic Daily Life Security

The government offices demanded the budget for the next year which amounts to 28 trillion 16.8 billion won more than that of this year.

The sector of `culture and tour` requested 1 trillion 900 billion, increased by 72.7 percent.

The `social welfare` sector demanded 13 trillion won, increased by 59.2 percent. And the requested budgets to support the small and medium venture companies and to develop the scientific information technology increased over 50 percent from the budgets of this year, amounting respectively 5 trillion 100 billion won, and 8 trillion 400 billion won.

Among the continuously working projects, the demanded budgets were considerably large in the local health insurance (3 trillion 342.3 billion won) and the basic daily life security (4 trillion 238 billion won). If the demand is accepted, the rate of the government subsidiary for the local health insurance will increase to a great extent to 50 percent from 28.8 percent of this year. The medical allowance among the basic daily life security items was amplified to 2 trillion 500 billion won from 1 trillion 100 billion won of this year.

According to the political fund law, the government subsidies for the political parties enlarged over four times (113.8 billion won) due to the presidential election which will be held next year. The amount of 113 billion won was requested for the election campaign.

And the amount of 7 trillion 951.3 billion won should be spent to repay the public funds and interests for the corporate restructuring next year.

The budget of 341.3 billion won was requested for the new railway constructions such as Kyongbu Express Railways (797.7 billion won), Honam Railways (375 billion won), and Incheon International Airport Railways (219.3 billion). And the harbor constructions such as Pusan new harbor and Kwangyang harbor also need the budget of 83.6 billion won.

▼ New Special Projects

Following the direct payment system for the rice-farming, the dry-field farming also requested 81.6 billion won for the introduction of the direct payment system. The Ministry of Gender Equality (MGE) demanded 32.7 billion won for the construction of the museum of women`s history. The secondary construction of Incheon Airport and the support for management improvement of the Incheon airport require respectively 64.3 billion won and 150 billion won. And the budget of 289.6 billion won is needed for the free compulsory education of the middle school.

▼ MPB Cut Off 20 Trillion Won

34 government offices including the MGE demanded to augment the budget over 20 percent next year. The MGE demanded the 2002 budget 12 times more than that of this year in order to construct the museum of women`s history and to enlarge the fund for women`s development. The Civil Service Commission and the National Election Commission requested the increase of the budget respectively by 467 percent and 219 percent.

Since the MPB, however, plans to establish the 2002 budget fitting to the estimated rate of the economic growth of next year (5-6 percent), the demanded budgets of the government offices are expected to be cut off to a great extent.

Director General for Budget Coordination of the MPB, Lim Sang-Gyu told that ``There are many offices who have demanded the inflated budgets. After closely reviewing the demanded budget of each office, the MPB will set up the 2002 budget according to the policy line to coordinate the structure of the annual expenditures and to elevate the efficiency of the expenditure.``

Choi Young-Hae moneychoi@donga.com