S. Korea's budget request for next year up 4.9 pct

SEOUL, July 9 (Yonhap) -- South Korea's ministries and agencies requested a
nearly 5 percent increase in their budget for next year as they wanted to spend
more on research and development (R&D) and national defense, the finance ministry
said Thursday.
A total of 50 government ministries and agencies sought to spend a combined 298.5
trillion won (US$233.5 billion) next year, compared with the 284.5 trillion won
budget for this year, according to the ministry.
The required amount is up 4.9 percent from the budget for this year but 1.1
percent lower than the nation's 2009 total spending plan -- including an extra
budget -- which totaled 301.8 trillion won, it added.
"We do not yet have any targeted spending figure for next year. We need to review
second-half economic indicators and other factors in crafting our budget plan for
next year," Yoo Sung-kull, deputy finance minister for budget office, told a
press briefing.
The increase in requested budgets came mostly from R&D, national defense and
health, welfare and labor sectors, according to the ministry.
Requested amounts for R&D spending jumped 9.7 percent from this year's budget to
13.5 trillion won, while that of national defense rose 7.9 percent to 30.8
trillion won, the ministry said.
Spending on social overhead capital including construction of roads and railways
is also required to increase by 5.7 percent to 26.2 trillion won. The SOC
projects for next year include the government-led efforts to streamline the
nation's four major rivers, it added.
In the fields of health, welfare and labor, ministries demanded 82.1 trillion won
for their budget next year, up 10.1 percent from this year's budget.
However, budgets for industry, small and medium-sized companies and energy
sectors were required to be trimmed by 16.2 percent to 13.6 trillion won. The
reduction was mainly due to the nation's expanded spending in the field this
year, the ministry said.
Education is another area where the requested budget amount declined. Budget
request for the area fell 6.9 percent from this year's budget to 35.7 trillion
won.
The ministry said it will hold consultations with concerned parties and determine
its final 2009 spending amount by the end of September. It aims to submit the
finalized plan to the National Assembly for approval by October 2.
kokobj@yna.co.kr
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