Government Affirms 60% Budget Spending in the First Half

Finance and Strategy Minister Bahk Jaewan affirmed the government plan to spend 60 percent of the budget in the first half of 2013. 30 percent of the budget will be spent by the end of March, and 60 percent will be spent by the end of June, to help boost the economy amid persisting global economic uncertainties. The minister called on each ministry and public organization to carry out the budget as planned, and asked for renewed efforts to spend more than 60 percent on projects that will have a strong effect on the economy, such as SOC projects, employment support and working class aid. The total budget for these projects is 99.4 trillion won.

<2013 Early Fiscal Expenditure Plan>

(trillion won, %)

2013 Fiscal expenditure

Q1

Q2

Amount

Percent

Amount

Percent

Total

289.5

86.8

30.0

173.8

60.0

- Budget

200.9

63.1

31.4

123.4

61.4

- Fund

36.3

10.0

27.5

21.2

58.5

-Public institutions

52.3

13.7

26.3

29.2

55.9

The government will concentrate on the following in order to successfully frontload the budget:

1. SOC projects and employment support programs, both of which have substantial positive effects on the economy will be given funding priority, and this year will receive a 10 trillion won increased temporary debt ceiling from 20 trillion won last year to 30 trillion won to supplement any financial shortages that may arise.

2. The Monthly Fiscal Expenditure Review Meeting will convene to monitor budget spending, and the government will aggressively collect taxes, if necessary

3. Government-wide on-the-spot reviews will help solve problems associated with the budget spending process, streamline the budget execution process and continue to improve other inefficiencies



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