Execution of 126 Trillion KRW in Central Finance in the First Half of Next Year... 63% Subject to Execution Management

15th Fiscal Management Review Meeting
"Accelerating the Effects of Expansionary Fiscal Policy"

Ando-geol, the 2nd Vice Minister of the Ministry of Economy and Finance, presides over the 15th Fiscal Management Inspection Meeting and delivers opening remarks at the Government Seoul Office in Gwanghwamun, Seoul, on the 29th. (Photo by Ministry of Economy and Finance)

[Sejong=Asia Economy Reporter Moon Chaeseok] The government announced on the 29th that it plans to execute 126 trillion won, which is 63% of the 200 trillion won in central government finances subject to execution management next year, in the first half of the year.

On the same day, the government reviewed this year's fiscal execution performance and discussed next year's execution management direction at the fiscal management inspection meeting chaired by Ando Geol, Vice Minister of Strategy and Finance.

Out of next year's main budget of 607.7 trillion won, the budget subject to execution management, excluding rigid projects with fixed execution timing and scale such as personnel expenses and mandatory expenditures such as local grants, is 200 trillion won.

The government set the purpose of next year's fiscal execution management as accelerating the effect of expansionary fiscal policy, achieving full normalization of the economy, and early realization of livelihood stability. Accordingly, the fiscal execution target for the first half of the year was set at 63%, the same as this year. This is higher than 61% in 2019 and 62% last year. The early execution targets for local government finances and local education finances in the first half of next year were set at 60.5% and 64%, respectively.

The government announced that it will complete the first quarter budget allocation of 250 trillion won by the 3rd of next month to encourage prompt contract signing and project announcements, and complete the regular fund allocation for January (tentatively 51.7 trillion won) by the 7th of next month. Detailed project budget details for five lump-sum projects (2.8 trillion won), including road safety and environmental improvement projects and cultural heritage repair and maintenance, which have broadly allocated budgets, will be finalized within next month.

Vice Minister Ahn said, "We will establish detailed plans for each ministry and project for early execution and execution management plans for six core industrial sectors within next month."

The government reported that as of the 24th, central government finances have been executed at 93.4% (576.6 trillion won), local government finances at 86.3% (452 trillion won), and local education finances at 92.5% (81 trillion won). The scale of execution for central government finances, local government finances, and local education finances this year is expected to increase by 86.5 trillion won compared to last year.

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