On Tuesday, the South Korean finance ministry released a 656.9 trillion won (US$495 billion) budget proposal for the coming year. It included details on spending, revenue, and fiscal management plans.
Expenditures:
— 656.9 trillion won in total, a 2.8 percent increase from the previous year
— 242.8 trillion won for health, welfare, and labor, a 7.5 percent rise
— 89.6 trillion won for education, a 6.9 percent drop
— 8.73 trillion won for culture, sports, and tourism, a 1.5 percent increase
— 12.5 trillion won for the environment, a 2.5 percent boost
— 25.9 trillion won for research and development, a 16.6 percent decrease
— 27.2 trillion won for industrial sectors, small and medium-sized enterprises, and energy, a 4.9 percent rise
— 26.1 trillion won for social overhead capital, a 4.6 percent increase
— 25.3 trillion won for agriculture, fisheries, and food, a 4.1 percent rise
— 59.5 trillion won for defense, a 4.5 percent increase
— 7.6 trillion won for diplomacy and inter-Korean affairs, a 19.5 percent surge
— 24.3 trillion won for public safety, a 6.1 percent rise
— 111.2 trillion won for administration, a 0.8 percent drop
— An average annual increase of 3.6 percent in government spending over the 2023-27 fiscal management plan
Income:
— 612.1 trillion won in gross revenue for next year, a 2.2 percent decrease from 625.7 trillion won in 2023
— 367.4 trillion won in total national taxes, an 8.2 percent decrease from 400.5 trillion won in 2023
Fiscal Health:
— A deficit of 92 trillion won predicted for next year, larger than a shortfall of 58.2 trillion won in 2023
— National debt estimated to reach 1,196.2 trillion won in 2024, up from 1,134.4 trillion won in 2023
— National debt estimated to take up 51 percent of GDP, more than the 50.4 percent in 2023