S. Korea Plans Smallest Deficit in Six Years as Growth Slows
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South Korea’s government plans to cut its fiscal deficit next year to the smallest in six years as policy makers preserve firepower amid a slowing global economy and rising welfare costs.
Total spending will increase 5.3 percent to 342.5 trillion won ($306 billion), the Ministry of Strategy and Finance said in its budget proposal for 2013 released today. The deficit will shrink to 4.8 trillion won, or 0.3 percent of gross domestic product in 2013, down from 14.3 trillion won, or 1.1 percent this year, according to its calculations.