Recent years have seen several problems and challenging prospects globally. The pandemic, lockdowns, vaccinations, the Russian invasion of Ukraine, and inflation. These problems are rising and counting.
To tackle and manage the state of affairs, several countries are trying to alter policies and manage the budget to recover from long-term concerns.
The South Korean administration has also taken a step to recover and get stable.
The first budget is announced under President Yoon Suk-yeol. It calls for a 6% cut in government spending in 2023.
It aims to cut pressure during the pandemic era and help the central bank in managing inflationary pressures.
The national assembly will get the budget plan on Friday.
According to the finance ministry,
In the year 2023, government expenditure will reach 639 trillion won which makes $473 billion. It would be the first yearly drop in spending since the year 2010, and it is 6 percent lower than the expenditure for this year after 2 supplementary budgets. South Korea’s 2023 spending growth will be 5.2% excluding additional budgets, the lowest increase since 2017. To maintain fiscal sustainability, improve its external credit standing, and spend wisely for future generations, the government is completely shifting its fiscal policy position to one of “sound financing.”
Conferring to the spending plan, the government stated that it would transfer some public works projects to the private industry and cut high officials’ incomes at the government’s highest levels in to achieve the 2023 spending cut.
This year and next, the government plans to cut spending for small and medium-sized enterprises by 18% while reducing spending for public infrastructure by 10.2%.
However, the budget also expects a rise in the costs of social welfare for lower-income earners and the weak. Welfare spending is only going to grow in an increasingly aging economy.
The year before, the birth rate in South Korea fell to a new low of 0.81 children per woman.
South Korea is an extremely competitive society. Societal pressure is one of the leading causes of high suicidal rates and lower fertility rates.
Furthermore, this plan is anticipated to give some relief to the nation
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