The South Korean government wants to further increase fiscal spending from the five-year average of 5.8 percent increase proposed last year after President Moon Jae-in took office, citing on more proactive endeavors to address both mid-term and long-term problems arising from demographic challenges.
Moon during campaigning vowed to strengthen the public role to stimulate the economy by upping tax spending by more than 5 percent annually compared with the average 3 percent growth in budgetary spending under former administration.
The Ministry of Strategy and Finance asked other government offices if they have further projects to pursue. The new outline will go under intra-government and experts’ review before seeking National Assembly approval.
Under the five-year budgetary outline drawn up in August last year, fiscal spending rose by the biggest pace of 7.1 percent this year. It is proposed to go up by 5.7 percent next year and slightly above 5 percent from 2021.
By Cho Si-young and Cho Jeehyun
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]