South Korea reins in stimulus with spending cuts

Welfare spending: A vendor stacks bags of sweets and dried goods at her stall in Seoul. South Korea’s budget foresees an increase in social welfare expenses for low-income earners and the vulnerable. — AFP

SEOUL: South Korea says it will cut annual government spending for the first time in more than a decade next year, as it strives to cut back on pandemic-era stimulus and help the central bank temper inflationary pressures.

Unveiling the first budget proposal under right-leaning President Yoon Suk-yeol, the finance ministry said government expenditure will be 639 trillion won (US$473bil or RM2.12 trillion) in 2023.