Despite the deadlock in the National Assembly over the contested Sewol-ho ferry bill, the government and the ruling Saenuri Party have tentatively agreed to increase next year's budget by five percent.
That would put the budget at around 3-hundred-70 billion U.S. dollars which is lower than the 6 percent increase government ministries and agencies had requested, and far below the 10 percent spike analysts had been expecting when the new economic team rolled out its stimulus measures in July.
Welfare programs stand to see the biggest budget increase, accounting for more than 30 percent of the total budget for the first time.
The government and the ruling party plan on finalizing the budget by the end of next month before putting it up for legislative approval.
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