According to the report, the plans for the revenue from the profits of state enterprises, the main source of state budgetary revenue, and the profits of cooperative organizations were overfulfilled and as a result, last year's plan for state budgetary revenue was carried out at 101.6 per cent, an increase of 5.7 per cent over the previous year. The plan for local budgetary revenue was carried out at 117.1 per cent.

Last year's plan for state budgetary expenditure was carried out at 99.9 per cent and 15.8 per cent of the total expenditure was spent for national defence.

Thanks to the increased investment in the fields of electric power, coal and metal industries and railway transport, the modernization of key industrial sectors, the priority sectors of the national economy, made dynamic progress and the construction of many major industrial objects was completed to further consolidate the material and technical foundation of the national economy and increase its production potentials.

5.4 per cent more funds than the previous year were spent for agriculture according to the policy objective of the Workers' Party of Korea to solve the food problem for the people and a large amount of fund was channeled into the work for accelerating the modernization of the light industry.

The financial disbursement was increased for the fields of science and technology and a huge amount of funds were spent for the development of education, culture, public health and physical culture and sports and the enforcement of such popular policies as the universal free compulsory education system, free medical service, social insurance and social security system.

The state budget for this year has been shaped in a realistic and dynamic manner on the principle of tapping sources of income to the maximum and cutting down the expenditure for non-productive units as much as possible so as to satisfactorily meet the financial needs for building an economic power, improving the standard of people's living and boosting the defence capability.

This year's plan for state budgetary revenue is expected to grow 5.2 per cent over last year. The revenue from the profits of state enterprises, the main source of budgetary revenue, is expected to go up 5.8 per cent over last year, that from the profits of cooperative organizations 3.1 per cent, that from the fixed asset depreciation 6.1 per cent, that from real estate rent 3.6 per cent and that from social insurance 1.6 per cent.

This year's plan for state budgetary expenditure is expected to show a 7 per cent increase over last year. It has been shaped in such a way as to direct a big share of it to definitely putting the overall economy on the orbit of growth, exceeding the level of the peak year in production, bringing about a signal turn in improving the standard of people's living and accelerating the modernization in all fields of the national economy.

15.8 per cent of the total state budgetary expenditure for this year is expected to be allocated for national defence to strengthen the People's Army, develop the defence industry and bring about a new turn in bolstering up the militia force.

8.7 per cent more funds than last year will go to the priority sectors of the national economy and the spending for the development of science and technology is expected to go up 8 per cent, that for agriculture 6.9 per cent, that for light industry 5.6 per cent and that for city management 11.5 per cent as compared with last year.

A huge amount of fund will go to the field of socialist cultural construction. The financial disbursement for education will swell 8.2 per cent, that for culture and arts 3.2 per cent, that for public health 8 per cent and that for sports 5.8 per cent over last year. The state will thus consistently enforce all the popular policies to clearly prove the advantages of the socialist state budget of the country where the money earned by the people is spent for them.

It is expected that the government will send a large amount of educational aid fund and stipends for the democratic national education of the children of Koreans in Japan this year, too.

Difficult and vast tasks are facing us this year, but there is no fortress unconquerable and only victory is in store for us as long as there are the Songun leadership of General Secretary Kim Jong Il, the inexhaustible mental power of the servicepersons and people single-mindedly united around the headquarters of the revolution, the matchless military power and the enormous potential of the self-supporting economy, concluded the reporter.