South Korea's ruling party and the government agreed to fully implement this year's budget to vitalize the economy and boost growth.

The ruling Democratic Party(DP) and the government had a meeting on fiscal spending at the National Assembly on Thursday, where they agreed to implement at least 97 percent of the central government budget and at least 90 percent of local government budgets. 

DP policy chief Cho Jeong-sik said in a media briefing following the meeting that they agreed on complete implementation of the supplementary budget within this year, adding that local government budgets should be fully spent to maximize the effects of spending on the economy. 

During the past three years, an average 16-point-five trillion won of the central government's 420 trillion won budget was carried forward and disused, while 46-point-six trillion won out of a cumulative 310-trillion won from local government budgets was unused.

DP floor leader Lee In-young said that the budget should be executed as planned through the rest of the year in order to prime the economy.

Vice Finance Minister Koo Yun-cheol added that the government will coordinate with local governments as well as the ruling party to maximize budget spending, which can add vitality to the economy.