Tuesday, September 28, 2010
SEOUL, Sept 28 - South Korea will slightly raise next year's budget spending to help ensure a recovery in Asia's fourth-largest economy, but it aims to lower the fiscal deficit by targeting higher revenues, the government said on Tuesday.
The Ministry of Strategy and Finance said it would propose to parliament a budget spending bill for 2011 totalling 309.6 trillion won , 8.2 percent up from this year's 292.8 trillion won.
The ministry said in a statement that the government aimed to narrow the fiscal deficit to 2.0 percent of the annual gross domestic product next year from a projected 2.7 percent shortfall in 2010.
It aims to raise total revenue next year by 8.2 percent to 314.6 trillion won from this year's estimated 290.8 trillion won.
The country plans to reduce sales of deficit treasury bonds to 22.0 trillion won next year from 29.3 trillion won for this year, it added.
It will boost budget spending in research and development by 8.6 percent to 14.9 trillion won next year.
But the country plans to cut spending on infrastructure, which was boosted to cope with the financial crisis, by 3.2 percent to 24.3 trillion won, as the economic recovery takes hold.
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