Gist of proposed state budget for 2027

SEOUL/SEJONG, Sept. 1 (Yonhap) -- The following is the gist of the 820.9 trillion-won (US$595 billion) state budget for next year that the budget ministry proposed on Tuesday. The government also gave estimates on total revenue and midterm fiscal management plans.

Spending:
-- To increase fiscal spending by 12.8 percent on-year to 820.9 trillion won
-- 289 trillion won on health, welfare and labor, up 9.3 percent
-- 110.7 trillion won on education, up 10.8 percent
-- 11.6 trillion won on culture, sports and tourism, up 20.4 percent
-- 14.6 trillion won on the environment, up 5.2 percent
-- 39.5 trillion won on research and development, up 11.2 percent
-- 41.2 trillion won on industrial sectors, small and medium-sized enterprises, and energy, up 29.7 percent
-- 28.9 trillion won on social overhead capital, up 4 percent
-- 30.7 trillion won on agriculture, fisheries and food, up 9.5 percent
-- 73.3 trillion won on defense, up 8.2 percent
-- 7.1 trillion won on diplomacy and inter-Korean affairs, up 1.1 percent
-- 28.8 trillion won on public safety, up 5.3 percent
-- 149 trillion won on administration, up 22.8 percent

Future Fund:
-- Establish the Future Fund with 162.3 tln won in windfall tax revenue

Revenue:
-- 880.8 trillion won in total revenue for next year, up 30.4 percent from 2026
-- 584.4 trillion won in total national taxes, up 49.8 percent from 2026

Fiscal health:
-- Managed fiscal balance to post a deficit of 3.1 trillion won for next year, compared with a shortfall of 107.8 trillion won in 2026.
-- National debt expected to reach 1,519.8 trillion won in 2027, up from 1,413.8 trillion won in 2026
-- National debt expected to take up 48.3 percent of GDP, down from 51.6 percent in 2026

Fiscal management plan
-- To seek an average annual increase of 8.4 percent in government spending under the 2026-30 fiscal management plan
-- To seek an average annual increase of 9.9 percent in government revenue under the 2026-30 fiscal management plan

colin@yna.co.kr
(END)