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Next Year’s Nat`l Budget to Rise 2.5 Pct.

Posted September. 29, 2009 08:27,   


The national budget next year is set at 291.8 trillion won (244 billion U.S. dollars), up 2.5 percent from this year’s but 3.3 percent less than the main and supplementary budget combined.

With the national debt expected to climb to a record high of 407.1 trillion won (340 billion dollars) next year, the national debt-to-GDP ratio will jump from 35.6 percent this year to 36.9 percent next year.

Strategy and Finance Minister Yoon Jeung-hyun said, “The government is confident that the Korean economy can achieve growth of four percent next year, and we will work hard to realize fiscal balance either in 2013 or 2014.”

Per capita debt is expected to rise from 7.51 million won (6,300 dollars) this year to 8.33 million won (7,000 dollars) next year and to 10.04 million (8,401 dollars) in 2013.

The government yesterday announced that it will pass the 2010 budget and national fiscal management plans for 2009-2013 in a state affairs meeting and submit them to the National Assembly by Thursday.

Next year’s public expenditures will see the lowest growth since 2005. Specifically, the health and welfare budget accounted for 27.8 percent, the highest in history, while that for foreign affairs and unification saw the highest growth rate of 14.7 percent.

The fiscal deficit will be an estimated 32 trillion won (26 billion dollars, minus 2.9 percent of GDP), up from 24.8 trillion won (20 billion dollars, minus 2.4 percent of GDP) in this year’s main budget but smaller than 51 trillion won (42 billion dollars, minus five percent of GDP) if additional budget is also counted.