Finance minister emphasizes fiscal soundness in preparing 2011 budget

SEOUL, Sept. 5 (Yonhap) -- Fiscal soundness is the most important factor that the government should take into account in establishing its 2011 budget proposal, the nation's top economic policymaker said Monday.
"Fiscal soundness is the major value that should be most emphasized in preparing the budget for next year and establishing the 2011-15 national fiscal management plan," Finance Minister Bahk Jae-wan told his staff members during a meeting.
The remarks remain in line with his previous stance on government spending. He has been opposed to what he calls "populist" welfare programs, a controversial issue being discussed in the political arena.
Bahk earlier said that the government should do its best to keep the nation's fiscal health in good shape in the face of populism "to prevent the current generation's debt-dependent life from causing difficulties for our next generations."
South Korea is in relatively good shape in terms of fiscal soundness, but there have been growing calls for increased spending on the social safety net as the population ages rapidly.
Last Thursday, the finance ministry unveiled its target to achieve a balanced budget in 2013 by trimming expenditure and broadening revenue sources as part of its 2011-15 fiscal management plan.
Under the plan, the government's 2011 spending will likely range from 323 trillion won (US$302.9 billion) to 328 trillion won, which is smaller than the 332.6 trillion won earlier requested by government ministries and agencies for their budgets next year.
The ministry, meanwhile, plans to submit its 2011 budget proposal to parliament by the end of this month for approval.