South Korea Prepares 2017 National Budget

by YuGee / Aug 31, 2016 05:52 AM EDT

Yoo Il Ho, South Korea's finance minister, speaks during a news conference in Seoul, South Korea, on Monday, Feb. 22, 2016. Regardless of how U.S.-South Korea talks on the Terminal High Altitude Area Defense anti-ballistic missile system conclude, South K

The Ministry of Strategy and Finance said on Tuesday that the South Korean government will increase its expenditure to 400.7 trillion won (US $360 billion) next year, focusing on improving social welfare and creating jobs.

This is said to be the first time that the national budget would exceed 400 trillion won, with more than 130 trillion won allocated for boosting social welfare. The budget for social overhead, meanwhile, will be cut by more than 8 percent.

The Korea Times reported that the ministry also declared that the 2017 budget increased 3.7 percent compared to this year, and the biggest ever. It has also doubled from 12 years ago.

The government explained that it has an expansionary financial plan for 2017.

Strategy and Finance Minister Yoo Il Ho said, "In 2017, the country will start seeing huge economic and social changes as the working-age population starts to fall. The budget focused on creating jobs and invigorating the economy while trying not to impair fiscal soundness in the mid to long term."

The budget for labor, welfare, and health makes up the 32.4 percent of the total budget as the government aims its attention on creating jobs, getting rid of blind spots in welfare, and providing tailored welfare.

The budget also allocates 17.5 trillion won for jobs, which increased 10.7 percent from last year. It involves assistance for startups, job training, and providing a balance between work and life for female workers. For youth employment, the budget was also increased by 15 percent, reserving 2.7 trillion won for 2017.

In an attempt to pull up South Korea's low birthrate, the government also allotted a budget for rental homes for newlyweds and young people, and for couples suffering from fertility problems. Couples with fertility problems will be given support for in vitro or artificial insemination, regardless of their income.

The government also increased its budget for culture, sports, tourism, and domestic defense.

Based on the estimate that the economy will hit 3 percent real growth in 2017, the national tax income is expected to reach 241.8 trillion won, which is 8.4 percent higher than this year. The proposed budget will be sent to the National Assembly on September 2 for approval.