S. Korea pushes back budget balance target to 2014

SEOUL, Sept. 3 (Yonhap) -- South Korea has pushed back the target for balancing its budget to 2014 as recent economic stimulus packages have put a drag on its fiscal soundness, the finance ministry said Thursday.

The government has been trying to shore up the slumping economy over the past
year through diverse measures, including an extra budget and tax reductions. It
earlier aimed to attain a balanced budget by 2012.
The new target is part of a mid-term fiscal policy management directive recently
submitted to the National Assembly, according to the ministry. Based on that
draft, the ministry will solidify details and submit a final plan along with next
year's budget to parliament in October, it added.
Under the plan, the government will also push for economic growth of 4 to 5
percent by 2012. It aims to lower the national debt to under 40 percent of gross
domestic product by the target year and further down to mid-30 percent by 2013,
the ministry said.
South Korea's economy is expected to shrink 1.5 percent this year, the first
minus growth in more than a decade, due to declines in exports amid the global
recession.
kokobj@yna.co.kr