44% of Budget Set for 1st Quarter
By Lee Hyo-sik
Staff Reporter
Nearly 44 percent of this year's fiscal budget, or 108.8 trillion won, will be spent in the first quarter of the year, up from 38 percent in the same period last year, as part of government efforts to mitigate the ongoing economic downturn.
The Ministry of Strategy and Finance said Thursday that the government will spend 43.9 percent of the 2009 state expenditure during the January to March period to prop up the rapidly faltering economy. The world's 13th largest economy is projected to hit rock bottom in the first half of the year amid sluggish domestic demand and plunging exports as a result of the global economic downturn.
``The overall business conditions here are deteriorating faster than initially expected. In particular, the nation's job market is suffering from the current economic slowdown to the greatest extent. It is important to carry out a number of state projects as planned to help boost the sagging economy and create jobs,'' Vice Strategy and Finance Minister Bae Kook-hwan said.
The government had initially called for 273.8 trillion won in fiscal spending for 2009, up 6.5 percent from last year's 257.2 trillion won. But this year's budget was then revised upward by 10 trillion won to 283.8 trillion won in December to help boost domestic demand.
``We will make every effort to ensure that taxpayers' money is well spent and our intended goal is achieved. The government will hold an inter-ministerial meeting twice every month to check whether state projects are implemented as planned and public officials in charge of budget spending are doing their job properly,'' Bae said.
The finance ministry plans to set up an inter-ministerial body to better coordinate the budget execution to increase cost-effectiveness and prevent the overlapping of fiscal expenditure.
It has also scheduled a series of public hearings on the use of taxpayers' money on research and development (R&D) activities across the nation to increase public understanding and gain cooperation from the private sector. It will hold hearings in Seoul, Daejon, Daegu and Gwangju later this month.