Government to Allocate 75% of Next Year’s Budget in First Half: "Execution to Begin Early in the Year"

468.3 Trillion Won Allocated in the First Half

The government has finalized a plan to allocate the majority of next year’s fiscal resources in the first half of the year, aiming to secure growth momentum early amid an economic slowdown.

The Ministry of Economy and Finance announced on December 9 that the Cabinet has approved the “2026 Budget Allocation Plan,” which will allocate 75% of the total expenditure budget in the first half of the year.

The government plans to concentrate budget allocations in the first half to support vulnerable groups, expand policy funds for small business owners, foster advanced industries, and invest in future strategic sectors, thereby expediting fiscal execution for both livelihood and future-oriented initiatives. The first-half budget allocation rate has remained at 75% for four consecutive years since 2023, maintaining the policy of early execution.

Deputy Prime Minister Koo Yooncheol Speaking (Seoul=Yonhap News) Photo by Kim Dohun = Koo Yooncheol, Deputy Prime Minister and Minister of Economy and Finance, is speaking at the Cabinet meeting held at the Yongsan Presidential Office on December 2, 2025. superdoo82@yna.co.kr (End)

The first-half budget allocation exceeded 70% for the first time in 2019 and has continued to expand since then. In particular, following the COVID-19 crisis, the need to respond to economic conditions increased, and since 2023, allocating 75% of the budget in the first half has effectively become standard policy.

According to the finalized plan, out of the total budget for next year (general + special accounts) of 624.8 trillion won, 468.3 trillion won will be allocated in the first half. Through budget allocation, the government grants ministries the authority to incur expenditures, such as signing project contracts. After this, funds are distributed in subsequent stages, leading to the actual implementation of projects.

Tax and non-tax revenues will be used first to cover expenditures, while any shortfall will be financed through government bond issuance or temporary borrowing. Subsequently, ministries will receive funds from the national treasury within the scope of their financial plans to carry out their projects.