S. Korea to boost spending

S. Korea to boost spending

SEOUL (DPA): South Korea plans to up state spending by six
trillion won (US$4.6 billion) to stimulate its battered economy
and support the growing number of people without jobs, a
supplementary proposal from the Seoul government published
yesterday said.

The finance ministry plan calls for an increase in this year's
budget deficit to around four percent of gross domestic product
or up to 17.5 trillion won.

This would be the largest budget deficit since 1981 when it
reached 4.7 percent.

The plan would need ratification by the International Monetary
Fund (IMF), a budget department spokesman in Seoul said. Raising
the budget deficit is one of the themes being discussed between
Seoul and a delegation form the IMF. At the end of April the two
sides had agreed on a 1.7 percent deficit to boost flagging
domestic demand.