ⓒYONHAP News

The government is aiming to rein in fiscal deficit to within three percent of the nation's gross domestic product in a move to improve fiscal health by shifting away from expansionary policies of the past five years.

Officials discussed measures during a fiscal strategy meeting chaired by President Yoon Suk Yeol on Thursday, in which they decided to implement a belt-tightening policy starting with next year's budget.

The government will curb expansionary fiscal policies pursued under the former Moon Jae-in administration and adopt a new five-year plan aimed at enhancing fiscal health.

The plan includes strict oversight of the number of public employees and their wage levels as well as stringent restructuring in state expenditure.

The measures are designed to support private sector-led growth and sustainability in state finances.

Amid concerns of surging national debt, the plan includes maintaining the debt-to-GDP ratio in the mid-50 percent range.

These policies will take effect starting with the 2023 budget.