SEOUL, March 28 (Yonhap) — South Korea will focus next year’s fiscal policies on better ensuring national security, by strengthening defense and public security, and creating more jobs for youth, in order to support the economy, as stated on Tuesday by the Ministry of Economy and Finance.
These policies are part of the government’s guidelines for the 2024 budget, approved the same day by the Cabinet, which also call for reinforcing fiscal strength amid growing national debt, according to the ministry.
The country is expected to draw up a national budget of about 670 trillion won (523.96 billion U.S. dollars) for next year, which is about 4.8 percent more than the 638.7 trillion won (492.33 billion U.S. dollars) this year. The fiscal management plan for 2022-2026 establishes a growth rate of total spending of 5 percent.
Second Vice Finance Minister Choi Sang-dae told reporters that the government will actively invest next year in strengthening social welfare programs for vulnerable people, creating quality jobs for youth and improving the execution of basic functions as a nation.
Under the guidelines, the government intends to increase next year’s defense budget to better deal with North Korea’s growing nuclear and missile threats. Strengthening asymmetric military capabilities and improving weapon systems, in particular, will be the government’s goals for the coming year, according to the ministry.
The Government is also expected to expand capacities to prevent and investigate drug-related crimes, as well as digital sexual violence, harassment and other problems.
It will use the budget to set up public security systems to improve preparedness against natural and other disasters, according to the ministry.
With the aim of creating more decent jobs for young people, the Government intends to expand support to small companies, through commercial financing to help them to actively enter foreign markets.
It also pledged to spend more on research and development projects to achieve advanced technologies in strategic industries, and fostering promising start-ups to boost exports and maintain the momentum of economic growth, the ministry said.
In terms of social welfare programs, the government has pledged to design “tailored support measures” for vulnerable groups, while reducing universal cash subsidies.
The Yoon Suk Yeol government has emphasized austerity policies to improve national fiscal strength after years of expansionary fiscal spending in response to the COVID-19 pandemic.
Government ministries and agencies will use the guidelines to draw up their spending plans by the end of May, which will be presented to the National Assembly by September 1, after consulting with entities and receiving public input.
(FIN)