The government is reportedly preparing a budget plan for next year with an annual increase rate of less than four percent.

According to the government and the ruling bloc on Wednesday, the Ministry of Economy and Finance is in the final stages of drawing up next year’s budget plan, with an increase in the three-percent range or below, which is lower than the four-point-two percent set in its national fiscal management plan for 2023 to 2027. 

After increasing this year’s budget by 2.8 percent, the government appears committed to maintaining fiscal soundness by keeping next year’s budget increase under four percent.

If the increase is set in the higher three-percent range, the budget for 2025 is likely to reach 680 to 682 trillion won, up 24 to 26 trillion won from this year’s budget. 

If the increase is set in the lower three-percent range, the figure is expected to fall below 680 trillion won. Should the increase be in the higher two percent range, similar to this year, it will further drop to 675 trillion won.