The government has proposed a three-point-seven percent rise for next year's budget, requesting an amount worth more than 400 trillion won for the first time.

During a Cabinet meeting Tuesday, the government finalized its 2017 budget plan of 400-point-seven trillion won that will be submitted to the National Assembly on Friday.

Next year's budget proposal is 14-point-three trillion won more than this year's budget of over 386 trillion.

The government explained that it formulated an expansionary budget within possible limits to pursue more aggressive fiscal policies.

Next year's budget is focused on a number of goals including job creation, economic vitality, securing future growth engines, tackling the nation's low birthrate and boosting public safety, among others.

Funds requested for the welfare sector jumped to a record 130 trillion won, or more than 32 percent of the total budget as the government is determined to create jobs, expand customized welfare and defuse blind spots in welfare and medical services. 

Priority on jobs continues to be the government's primary focus, testified by sharp increases in job-related budgets including two-point-seven trillion won allotted for creating jobs for youths.

Also as an alternative to the disputed Nuri curriculum, a free preschool program for children ages three to five, the government will newly create a special account budget to support provincial educational policies. Next year's entire educational tax revenue of five-point-two trillion won will be converted to this new budget account.

The government's budget proposal for the culture, sports and tourism sector has also increased almost seven percent to over seven trillion won.

The defense budget request is also up four percent to 40-point-three trillion won to top the 40 trillion mark for the first time as South Korea seeks to strengthen defense capabilities against North Korea's nuclear and missile threats and also improve conditions in military barracks.

Meanwhile, the government expects the economy to grow three percent next year with the nominal growth to reach four-point-one percent.