North Korea's parliament opened a plenary session Wednesday to address the budgets for this year and next year, as well as other key state affairs with leader Kim Jong-il in attendance.

The Korean Central TV Broadcasting Station said that the fifth session of the eleventh Supreme People's Assembly opened at Mansudae Assembly Hall in Pyongyang and elected Transport Minister Kim Yong-il as the country's new premier.

The state-run TV said the parliament decided to place top priority on improving the lives of citizens and make all-out efforts to resolve the food shortage issue while further strengthening the nation's military capability.

The North’s 2007 budget is likely to increase five-point-nine percent, amounting to some three billion dollars, with nearly 16 percent of the budget being allocated for national defense.

The parliament stopped short of mentioning the February 13th nuclear accord or its nuclear standoff during the plenary session but did express strong intent to possess nuclear arms in the wake of its nuclear test last October.