Next Year, Money Will Be Released Faster... 72.4% of the Budget Allocated in the First Half of the Year

'2021 Budget Allocation Plan'

[Sejong=Asia Economy Reporter Joo Sang-don] The government allocated 72.4% of the total expenditure budget (based on the total of general and special accounts) in the first half of the year to be immediately deployed for overcoming the COVID-19 crisis and early economic recovery.

The government finalized the '2021 Budget Allocation Plan' containing this information at the Cabinet meeting on the 8th.

The total expenditure for next year's budget is 558 trillion won. Excluding funds, the total expenditure budget for next year, combining general and special accounts, is 459.9 trillion won. Of this, 333.1 trillion won (72.4%) will be allocated in the first half of the year. This is 1 percentage point higher than this year's first half budget allocation rate (71.4%). The scale of the budget allocated in the first half exceeding 300 trillion won is the second time following this year. Typically, the government plans a larger allocation than the actual execution plan to ensure smooth fiscal execution.

Budget allocation grants each ministry the right to use the budget. Only after budget allocation can expenditure-causing acts such as contracts be carried out. Subsequently, through fund allocation, which grants the right to use funds, each ministry receives funds within the scope of their fund plan and executes actual projects.

An official from the Ministry of Economy and Finance said, "We focused on early allocation for industries, small and medium enterprises, social overhead capital (SOC), and research and development (R&D) sectors to support economic recovery and secure future growth engines," adding, "We will thoroughly prepare in advance so that the allocated budget can be executed early from the beginning of the year through the subsequent fund allocation process."

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