[Seoul 29th Reuters]-The Korea Ministry of Planning and Finance announced that it will submit a budget plan for the 2020 (January-December) scale of 513,500 billion won (423,450 million dollars) on the 29th. As economic risks increase both at home and abroad, the most aggressive fiscal spending is planned after the global financial crisis of 08-09.
Compared to the current fiscal year, the scale of the budget plan is 8.0% when the supplementary budget is included and 9.3% when it is excluded.
Next fiscal year's fiscal deficit is expected to be 3.6% of GDP, expanding from 2.2% expected this year. If the ratio is as expected, it will be a high level since 2009.
The Korean economy is highly dependent on exports, and is under pressure from the slowdown in overseas demand and the chilling consumer sentiment against the backdrop of intensifying trade friction between the US and China and worsening relations between Japan and Korea.
Hong Nam-ghi, Economic Deputy Prime Minister and Minister of Planning and Finance, commented, “The previous economic retaliation measures by Japan increased uncertainty, and investment and exports continued to be sluggish. Issued.
The Ministry of Planning and Finance has shown a policy of greatly expanding spending on social security, job creation, SME support, environmental measures, and R & D (research and development) projects.
He also asked the Diet to approve the issuance of deficit bonds worth 60,200 billion won. The amount of deficit-issued government bonds has increased to almost double from this year's 33.800 billion won.
The Ministry of Planning and Finance will send the budget bill to the National Assembly on September 3, and the National Assembly will vote by the beginning of December.