The government will allocate 75% of next year's total expenditure budget in the first half to ensure prompt budget execution. This is intended to stimulate domestic demand through early fiscal execution.
On the 17th, the government confirmed the '2025 budget allocation plan' with these details at the cabinet meeting.
The government allocated 431.1 trillion won, which is 75% of the total budget of 574.8 trillion won, including general and special accounts, in the first half of next year. The government has been allocating 75% of the budget in the first half for three consecutive years since 2023.
Budget allocation refers to granting rights to each department to use the budget. Contracts and other causative actions of expenditure can be carried out only after the budget allocation is made.
The Ministry of Strategy and Finance explained that the budget was allocated early for urgent needs to support the socially disadvantaged, such as alleviating the living cost burden for low-income households, supporting vulnerable groups, customized support for small business owners, and fostering advanced industries to spread economic vitality.
An official from the Ministry of Strategy and Finance said, “We will thoroughly prepare in advance so that the allocated budget is executed in a timely manner from the beginning of the year, after going through procedures such as fund allocation.”