SEOUL, KOREA - The government has confirmed the next year's budget proposal volume at 376 trillion won (US$361 billion), up 5.7 percent from this year. The growth rate is highest since 2008. The expansionary budget is considered to have reflected the government's strong will to revive the economy through stimulus measures.
The government decided the budget bill at the September 18 Cabinet meeting presided over by President Park Geun-hye. It will submit the bill with the National Assembly by the 23rd. Vice-Minister of Strategy & Finance Bahng Mun-gyu said, "The primary objective of the fiscal year 2015 budget proposal is to stimulate the economy through fiscal policy."
To that end, the government will increase budget items for economic stimulus, public safety, low-income familiy protection. By item, welfare area saw the largest increase at 8.5 percent from the previous year to 115.5 trillion won. Of the welfare budget, the amount set aside for job-related protection was 14.3 trillion won, up 7.6 percent from 2014.
The safety-related budget increased to 17.9 percent to 14.6 trillion won, the highest jump from this year's budget. The budget for realizing a creative economy was decided at 8.3 trillion won, up 17.1 percent.
When writing the budget bill, the government used assumptions that next year's consumer price inflation at 2 percent, real economic growth rate at 4 percent, and current budget growth rate at 6 percent.
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