Welfare Budget to Grow By 10 Percent

The government has set the national budget at 238.5 trillion won for next year, up 7.5 percent from this year’s budget.

The per-capita tax burden is likely to reach 3.83 million won, up 5.5 percent or 200,000 won on average. The national deficit is expected to exceed 300 trillion won for the first time in history.

Government officials agreed to submit a proposal for a 2007 budget and state fund management plan to the National Assembly on September 29 at the State Council meeting presided over by Prime Minister Han Myung-sook yesterday. Under the proposal, the government will spend a total of 238.5 trillion won, including 164.7 trillion won for general and special accounting, and 73.8 trillion won for state funds.

The size of the national budget is 7.5 percent bigger than this year’s budget of 222 trillion won and 6.4 percent bigger than this year’s total supplementary budget of 224.1 trillion won.

One thing worth noting is that welfare and defense budget will be dramatically expanded while spending on Social Overhead Capital will decrease.

The government has allotted 61.8 trillion won for welfare and healthcare budget, up 10.4 percent from this year’s 5.8 trillion won.

Salaries for public officials will also increase by an average 2.5 percent from this year. The government is planning to issue deficit covering state bonds amounting to 8.9 trillion won next year.

Next year’s year-end deficit is expected to top 302.9 trillion won, up 19.4 trillion won this year.