Cabinet approves extra budget plan to revive economy

The government said it will submit to the National Assembly on Thursday a supplmentary budget plan scaled at 17.3 trillion won (US$15.4 billion) in a bid to revive the economy and stabilize the people's livelihood.

The Cabinet approved the extra budget proposal Tuesday.

Of the money, 12 trillion won will be used to offset revenue shortfalls, while the remaining 5.3 trillion won will be a net increase in expenditures, the Ministry of Strategy and Finance said.

The finance ministry expected the stimulus plan, the largest since 2009, to create 40,000 jobs, including 4,000 jobs in the public sector, this year.

The government plans to issue bonds worth 15.9 trillion won to finance most of the extra budget.

In addition to the supplementary budget plan, the government will set aside state-run funds amounting to 2 trillion won to help reinvigorate the housing market, the ministry said.

The stimulus plans come as the country's economy is showing signs of slowing. The economy grew 2 percent last year, the lowest growth in three years.

Park Sae-jin swatchsjp@ajunews.com