Next Year's Budget Set at 821 Trillion Won... Spending Rises 12.8% to an All-Time High

The government has finalized next year's total expenditure budget plan at about 821 trillion won. This is an increase of 12.8% from this year, the largest growth rate since the total expenditure concept was introduced in 2005. According to the 2027 budget proposal announced on the 1st by the Ministry of Planning and Budget, national tax revenue rose sharply due to increases in corporate and income taxes from improved semiconductor industry conditions, so total revenue exceeded total expenditure. Accordingly, the fiscal balance is expected to improve, and the national debt ratio is also forecast to fall to 48.3% of GDP. Based on the increased tax revenue, the government plans to establish a Future Response Fund worth 162.3 trillion won and make concentrated investments in advanced industries, artificial intelligence, local regions, youth, education, and talent. Expanded support for local governments and strengthened support related to youth, childbirth, and marriage were also included in the budget proposal.