Gov't to expand social infrastructure, welfare spending

(ATTN: UPDATES with more details, comments throughout)
By Lee Joon-seung
SEOUL, Sept. 7 (Yonhap) -- The government plans to inject large sums of money
into social overhead capital (SOC) building projects and greatly expand welfare
spending next year, a senior economic policymaker said Monday.
In a report made at the special presidential committee on the economic crisis,
Finance Minister Yoon Jeung-hyun said 6.7 trillion won (US$5.4 billion) will be
spent on the so-called "four rivers" project as planned, but sizable funds are to
be injected into other SOC works to help boost economic growth.
"This move is to alleviate concerns that the government paying too little
attention to other infrastructure building endeavors," the official said at the
meeting chaired by President Lee Myung-bak.
The development of the Han, Nakdong, Geum and Yeongsan rivers to cope with future
floods and water shortages was a key campaign pledge of President Lee, although
it has drawn fire for monopolizing the country's resources.
He also said that up to 550,000 public jobs will be created throughout next year,
up from 400,000 this year, with welfare funds to rise sharply to help
underprivileged people hurt by the economic downturn.
Without going into details, he said welfare-related spending will rise twice the
rate of funds earmarked for other projects.
"The proportion of welfare spending will rise to the highest levels ever in next
year's budget spending plan," Yoon said, pointing out support will go to helping
relieve housing shortages, childcare, assistance for senior citizens and the
physically disabled.
Such steps are needed because although the economy may grow around 4 percent
on-year in the new year from minus growth expected for 2009, the benefits will
not be felt by lower income earners, he said.
The minister in charge of the country's economic policies stressed that while
defense spending has generally contracted since the 1997-98 Asian finance crisis,
the budget for next year will rebound into positive territory.
He said money will help meet core defense needs such as dealing with North
Korea's missile threats, and conducting research and development to enhance the
country's to defend capabilities.
The official added that Seoul will increase export insurance coverage support
that is vital for expanding exports and facilitate policies that can help small-
and medium-sized exporters in the shipping and industrial plant construction
sector.
Related to the government's budget plan, President Lee called for swift approval
of the government budget so the country can better deal with the ongoing economic
crisis.
"Because the economic crisis has yet to come to an end, the budget for 2010 will
have to be one that will help overcome the crisis, but it will also have to be
one that creates jobs," Lee said.
He stressed that increasing spending on welfare is in response to consideration
for ordinary citizens and the socially weak.
The government plans to submit it budget bill to the parliament following final
consultations with ministries and the ruling Grand National Party. The parliament
has until the end of the 100-day regular session that kicked off this month to
pass the bill.
yonngong@yna.co.kr
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