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Gov’t to Greatly Cut Budget Spending

Posted March. 12, 2008 08:10,   


The government will cut state spending by prosecuting those who fraudulently receive welfare subsidies and introduce competitive bidding for a wide range of public projects.

The Strategy and Finance Ministry yesterday announced that it will cut government spending by two trillion won this year and an additional 18 trillion won next year through a ten-percent reduction of the state budget.

A public official can also earn bonuses up to 39 million won, or 40,000 dollars, by proposing ideas that reduce budget spending.

Since this year’s budget has been set, the government will cut overhead costs, including those for labor and communication and minimize overlapping projects.

Next year’s budget, however, will see a sharp drop after all state projects undergo a review.