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MON, 2014-11-24  KST

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Budget increase for 2015 smallest in five years
Updated: 2014-06-27 06:55:29 KST


The government has cut out a larger portion of next year's budget for promoting public safety and the economy, money that may come from reduced investments in social overhead capital projects, among others.
The Ministry of Strategy and Finance said the budgetary scale for 2015 is around 371-billion U.S. dollars, up 6 percent from this year's budget.
It's the smallest rate of increase in five years, mainly due to the government strengthening its budgetary rules.
It implemented a pay-as-you-go system, a practice of financing new spending commitments with currently available funds.
This means when ministries introduce new bills that require increased spending, the funding must come through cuts to other bills.
The ministry has already requested cuts to projects related to social overhead capital and the environmental and agriculture sectors.
The government also plans to cut down on the number of projects that overlap, and has asked ministries and local municipalities to strengthen cooperation for efficiency.
The ministry plans to finalize its budget proposal by September this year.
Kim Ji-yeon, Arirang News.

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