A new bill will be drafted by September to prevent the reckless use of state finances that come from taxpayer money.

Chairing the 18th fiscal strategies meeting on Thursday, Deputy Prime Minister and Finance Minister Yoo Il-ho expressed plans to draft a special law on fiscal soundness with the goal of submitting it to a National Assembly plenary session in September.

He described the bill as seeking to fundamentally block any damage inflicted on fiscal soundness.

The government believes South Korea's fiscal situation is relatively better off than other advanced or neighboring economies. However, due to demographic changes and higher welfare demand, the government believes national debt as a percentage of gross domestic product(GDP) can jump from the current 40 to the 60 percent range.

Minister Yoo said the bill will include measures to set a ceiling on the national debt level as well as what's called the pay-go system, which requires preparing the means of funding when drafting a spending plan.