2015 Budget Proposal
2015 Budget Planned to Support Expansionary Fiscal Policies
The 2015 budget proposal promotes expansionary policies as total budgets will be increased by 20 trillion won, or 5.7 percent compared with the 2014 budget. A total of 376 trillion won will be spent to help the economy build up recovery momentum, improve safety and support the working class. Deficits in fiscal balance and national debt are projected to temporarily increase from 1.7 percent to 2.1 percent and from 35.1 percent to 35.7 percent, respectively, but the government is confident that fiscal soundness will continue to improve in the mid- to long-term.
I. 2015 Budget Proposal
1. Key Policies
The 2015 budget proposal supports expansionary fiscal policies, while emphasizing increased investment in job creation, domestic consumption and the creative economy in order to achieve sustainable growth. Investment to guarantee infrastructure safety will be increased, and supports for the working class will be strengthened.
Budgets will be more efficiently spent in 2015 by getting rid of wasteful spending on similar or overlapping projects and benefit fraud.
2. The 2015 Budget Proposal
The government revenues are projected to increase 3.6 percent, which is smaller than a 6.2 percent increase forecast in the 2013-2017 national fiscal management plan.
The total government expenditures will rise 20 trillion won, or 5.7 percent, which is larger than a 3.5 percent increase projected in the 5 year national fiscal management plan. The increase is larger than the average supplementary budget of 5-6 trillion won in the past few years.
The 2015 budget proposal lays the foundations for creating a virtuous cycle of expansionary fiscal spending, increased consumption, economic recovery and increased revenues, while continues to purse fiscal expenditure efficiency.
(trillion won, %)
|
|
2014 Budget |
2015 Budget Proposal |
|
Total Government Revenues |
369.3 |
382.7 (+3.6%) |
|
Total Government Expenditures |
355.8 |
376.0 (+5.7%) |
|
Consolidated Fiscal Balance minus Social Security
(% to GDP) |
-25.5
(-1.7) |
-33.6
(-2.1) |
|
Consolidated Fiscal Balance
(% to GDP) |
13.5
(0.9) |
6.8
(0.4) |
|
National Debt
(% to GDP) |
527.0
(35.1) |
570.1
(35.7) |
Budgets by area
(trillion won)
|
|
2014 Budget (A) |
2015 Budget Proposal (B) |
Change |
|
(B-A) |
% |
|
Total Expenditures |
355.8 |
376.0 |
20.2 |
5.7 |
|
Social Security |
106.4 |
115.5 |
9.1 |
8.5 |
|
Job Creation |
13.2 |
14.3 |
1.1 |
7.6 |
|
Education |
50.7 |
53.0 |
2.3 |
4.6 |
|
Sports, Tourism, Culture |
5.4 |
6.0 |
0.6 |
10.4 |
|
Environment |
6.5 |
6.7 |
0.3 |
4.0 |
|
R&D |
17.8 |
18.8 |
1.0 |
5.9 |
|
Creative Economy |
7.1 |
8.3 |
1.2 |
17.1 |
|
Industry, SME, Energy |
15.4 |
16.5 |
1.1 |
7.0 |
|
SOC |
23.7 |
24.4 |
0.7 |
3.0 |
|
Agriculture, Forestry, Fishery, Food |
18.7 |
19.3 |
0.6 |
3.0 |
|
National Defense |
35.7 |
37.6 |
1.9 |
5.2 |
|
Diplomacy, Reunification |
4.2 |
4.5 |
0.3 |
6.9 |
|
Social order & Safety |
15.8 |
16.9 |
1.1 |
7.1 |
|
Safety |
12.4 |
14.6 |
2.2 |
17.9 |
|
Local Government |
57.2 |
59.2 |
2.0 |
3.4 |
Please refer to the PDF for the full file
