Finance ministry to beef up fiscal frontloading for Q1

Korea's finance ministry said Wednesday that it will speed up its budget-frontloading efforts to pump-prime the economy struggling with faltering exports.

The ministry earlier said it will spend 144 trillion won ($116.6 billion) out of the 330.6 trillion won budget for 2016 in the first three months of the year as key economic data showed that the country is facing some tough challenges.

Asia's fourth-largest economy is grappling with plummeting exports in the face of a sharp downturn in oil prices and waning global demand, with its domestic consumption remaining in the doldrums.

Its exports, the country's key economic driver, plunged 18.8 percent in January from a year earlier, the largest on-year drop in more than six years, while its consumer prices grew less than 1 percent last month for the first time in three months.

The Ministry of Strategy and Finance has encouraged government ministries and agencies to execute the frontloaded budget for the January-March period as scheduled.

The government spent 22.5 trillion won in January alone, up 1.9 trillion won from the 20.6 trillion won that initially earmarked for the month.

The finance ministry said it will make early payments to builders who engage in state-funded public works projects and focus educational spending in March when the new school semester begins.

"The central and provincial governments and public corporations have to cooperate in frontloading the budget in the first quarter," said Noh Hyeong-ouk, deputy finance minister for fiscal affairs.

"The ministry will iron out any problems that hinder state authorities from spending money in a cooperative way." (Yonhap)