The Korean government is expected to propose to bump up 2020 budget by more than 6 percent to a fresh record high of near 500 trillion ($422 billion), given the spending outlines so far compiled from government agencies.

The Ministry of Economy and Finance said Friday that ministries and state agencies have requested spending schemes totaling 498.7 trillion won, up 6.2 percent from this year`s 469.6 trillion won.

Under President Moon Jae-in, fiscal spending rose 6.0 percent on year in 2018 and 6.8 percent in 2019, doubling the average growth of 3 to 4 percent under the past conservative governments.

The economy and finance ministry will finalize the budget proposal and submit it the National Assembly by Sept. 3 for approval.

The request for welfare spending increased 12.9 percent to 181.7 trillion won against a year earlier.

R&D budget request amounted to 22.4 trillion won, up 9.1 percent on year. The funds set aside will be used to support key tech sectors such as hydrogen economy, big data, artificial intelligence, and 5G network.

Defense budget request increased 8.0 percent on year to 50.4 trillion won. The request for public safety was up 3.0 percent, general administration 3.0 percent, and education 2.3 percent.

Budget request for social overhead capital projects, however, fell 8.6 percent to 18.1 trillion won as a bulk of state projects handled by central government agencies have been transferred to local governments. Due to the same reason, the budget request for agricultural, livestock, fishery and forestry sectors contracted 4.0 percent.

By Sohn Il-seon and Cho Jeehyun

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]