South Korea has proposed a nearly 556 trillion won budget for next year, up eight-and-a-half percent from this year's budget.

The government approved the 2021 budget on Tuesday at a Cabinet meeting at the presidential office and plans to submit it to the National Assembly on Thursday.

The total budget will rise to a record 555-point-eight trillion won next year. Compared to this year's spending including three extra budgets, it represents an increase of one-point-six percent. 

The government's budget surpassed 550 trillion won for the first time just a year after topping the 500-trillion-won mark. 

The government allocated 21-point-three trillion won to finance the "Korean New Deal" stimulus package next year.  

As for efforts to ride out the fallout of the COVID-19 pandemic, the government put aside eight-point-six trillion won to keep or create more than two million jobs.

Infrastructure projects for balanced national development will receive 16-point-six trillion won next year.