2026 Budget Proposal Analysis Series

Published on October 31, 2025
Published by Budget Analysis Coordination Division, Budget Analysis Department

   On September 3, the government presented the 2026 budget proposal to the National Assembly, outlining total revenues of KRW 674.2 trillion and total expenditures of KRW 728.0 trillion. The government explained that it will proactively operate the fiscal system to establish a virtuous economic cycle under the themes of recovery and growth, for instance, by raising the total expenditure growth rate significantly from 2.5% in 2025 to 8.1% in 2026. The budget will focus on three key areas - 1) an ultra-innovative economy driven by technology, 2) a society for shared growth and strong foundations, and 3) diplomacy and national security centering on public safety and the national interest.As Korea's economy has faced both internal and external challenges such as delayed recovery of domestic demand and tariff disputes throughout the year, the government has increased total expenditures significantly to ensure the country's fiscal system supports the economy. Meanwhile, concerns have been raised about fiscal soundness, with the Managed Fiscal Balance ratio projected at -4.0% of GDP and the national debt ratio at 51.6%. Given these circumstances, the role of the National Assembly in examining the adequacy and effectiveness of the budget proposal is more important than ever to ensure that limited fiscal resources are utilized efficiently.In this regard, the National Assembly Budget Office has published the 2026 Budget Proposal Analysis Series to assist the National Assembly's deliberation of the 2026 budget proposal. The Series consists of 20 volumes - one volume of Fiscal Aggregates Analysis, one volume of Analysis of Allocation of Budget Resources by Sector, four volumes of Comprehensive Analysis, twelve volumes of Analysis by Committee, one Analysis of Gender-ResponsiveBudget Proposal, and one Analysis of Climate-ResponsiveBudget Proposal. More specifically, in the Comprehensive Analysis, the Series provides an in-depth review of the government's major fiscal issues and policies, including AI transformation and regional hub development, in an effort to provide more in-depth support for legislative activities.