| 광고 | |||
By Yoon Ja-young
The government will prioritize job creation and household income growth and other pledges of President Moon Jae-in in developing next year’s budget. And it will help execute President Moon Jae-in’s economic development plans, dubbed Jnomics.
The finance ministry on Friday released revised guidelines for next year’s budget. It had issued guidelines in March, but altered them to reflect the new administration’s pledges.
Ministries will set up their budgets based on the guidelines and submit them to the finance ministry this month. After further consultation, the finance ministry will submit the 2018 budget plan to the National Assembly by Sept. 1.
According to the guidelines, ministries are to give priority to projects related to job creation, President Moon Jae-in’s biggest concern. His first order as a president was to set up a jobs committee.
The guidelines stress inclusive growth, seeking a virtuous circle where jobs increase household income, leading to more consumption and corporate investment, thereby creating more jobs and boosting the economy.
The guidelines also focus on converting irregular jobs to regular jobs in the public sector, cutting working hours and supporting small businesses and merchants so they can create better jobs.
Tackling the low birthrate is also at the top of the list. The government will inject more money to increase state-run daycare centers and expand state support for pregnancy, childbirth and childcare leave.
It will also increase investment to reduce fine dust, including installing more fine-dust detectors and expanding renewable energy. Tackling fine dust is among President Moon’s priorities and he has ordered a temporary shutdown of old coal-fired power plants to reduce the problem.
The finance ministry made it clear that it will curtail tax cuts or tax exemptions for conglomerates and high-income earners. Analysts say this is a de facto a tax hike, which is inevitable to fulfill the new president’s pledges. According to the ruling Democratic Party of Korea, 178 trillion won will be needed to meet the pledges over the next five years. President Moon said during the election campaign that his administration could raise the corporate tax rate if necessary.
Each ministry is expected to cut discretionary spending by 10 percent, according to the guidelines. And they will have to scrap projects that have had little success.
The government will also collect more in penalties from those engaged in unfair trade and lawbreakers.
“Each ministry will examine the needs of beneficiaries such as young people and senior citizens as well as small merchants and businesses, reflecting them in the budget,” the finance ministry said.
The government will prioritize job creation and household income growth and other pledges of President Moon Jae-in in developing next year’s budget. And it will help execute President Moon Jae-in’s economic development plans, dubbed Jnomics.
The finance ministry on Friday released revised guidelines for next year’s budget. It had issued guidelines in March, but altered them to reflect the new administration’s pledges.
Ministries will set up their budgets based on the guidelines and submit them to the finance ministry this month. After further consultation, the finance ministry will submit the 2018 budget plan to the National Assembly by Sept. 1.
According to the guidelines, ministries are to give priority to projects related to job creation, President Moon Jae-in’s biggest concern. His first order as a president was to set up a jobs committee.
The guidelines stress inclusive growth, seeking a virtuous circle where jobs increase household income, leading to more consumption and corporate investment, thereby creating more jobs and boosting the economy.
The guidelines also focus on converting irregular jobs to regular jobs in the public sector, cutting working hours and supporting small businesses and merchants so they can create better jobs.
Tackling the low birthrate is also at the top of the list. The government will inject more money to increase state-run daycare centers and expand state support for pregnancy, childbirth and childcare leave.
It will also increase investment to reduce fine dust, including installing more fine-dust detectors and expanding renewable energy. Tackling fine dust is among President Moon’s priorities and he has ordered a temporary shutdown of old coal-fired power plants to reduce the problem.
The finance ministry made it clear that it will curtail tax cuts or tax exemptions for conglomerates and high-income earners. Analysts say this is a de facto a tax hike, which is inevitable to fulfill the new president’s pledges. According to the ruling Democratic Party of Korea, 178 trillion won will be needed to meet the pledges over the next five years. President Moon said during the election campaign that his administration could raise the corporate tax rate if necessary.
Each ministry is expected to cut discretionary spending by 10 percent, according to the guidelines. And they will have to scrap projects that have had little success.
The government will also collect more in penalties from those engaged in unfair trade and lawbreakers.
“Each ministry will examine the needs of beneficiaries such as young people and senior citizens as well as small merchants and businesses, reflecting them in the budget,” the finance ministry said.