Government Ministries' Budget Requests for Next Year Reach 543 Trillion Won... 6.0% Increase from This Year

[Asia Economy Reporter Kwangho Lee] Government ministries have submitted expenditure plans totaling 543 trillion won for next year. The ministries requested budget increases focusing on the Korean New Deal to lead the post-COVID-19 era and the expansion of an innovative inclusive nation.

On the 12th, the Ministry of Economy and Finance announced that the total budget and fund expenditure requested by each ministry for 2021 amounted to 542.9 trillion won. This is a 6.0% increase compared to this year's budget (512.3 trillion won).

The rate of increase in budget requests has recorded 6% levels for four consecutive years: 6.0% in 2018, 6.8% in 2019, 6.2% this year, and 6.0% for next year.

The budget increased by 3.9% to 364.8 trillion won from this year's 351.1 trillion won, and funds increased by 10.5% to 178.1 trillion won from this year's 161.1 trillion won.

By sector, the Ministry of Industry and SMEs requested a 12.2% increase to support the activation of startups and ventures in digital and non-face-to-face industries, management stabilization and growth support for small and medium enterprises and small business owners, online export support, and the promotion of renewable energy.

The research and development (R&D) sector requested 26.5 trillion won, a 9.4% increase. The increase is due to the full-scale promotion of supply stabilization for 100 key materials, parts, and equipment items, basic research, and fostering of DNA (Data, Network, AI) + BIG3 (future cars, system semiconductors, bio-health) sectors.

In particular, welfare and employment requested a 9.7% increase to strengthen the employment safety net through the full implementation of the National Employment Support System, new technology vocational training, expansion of social safety nets such as basic pensions and basic living security, and advancement of K-quarantine. The National Employment Support System, a Korean-style unemployment assistance system, is a national agenda of the Moon Jae-in administration. On the 9th, President Moon presided over a Cabinet meeting and urged, "Please ensure thorough implementation of the National Employment Support System," and added, "Make efforts to further develop the system so that it can play a substantial role as an unemployment assistance system."

The environment sector requested a 7.1% increase focusing on the Green New Deal, including greenhouse gas reduction, smart local water supply systems for drinking water safety management, and green industries. The defense sector requested a 6.0% increase to improve defense capabilities and strengthen power operations, including nuclear and WMD response, advanced weapon system construction, and improvement of soldiers' service conditions.

Additionally, requests for social overhead capital (SOC), agriculture, forestry, fisheries, food sectors, and education increased by 4.9%, 0.6%, and 0.8%, respectively.

The Ministry of Economy and Finance plans to finalize the budget for next year based on the requests from each ministry and submit it to the National Assembly by September 3.

An official from the Ministry of Economy and Finance said, "We will comprehensively consider next year's economic situation, revenue and expenditure needs, and reflect additional requests due to changes in policy conditions after receiving the Korean New Deal comprehensive plan and other requests to prepare the budget."

This content was produced with the assistance of AI translation services.