North Korea to Increase State Budget by Over 5% for Economic Development and Defense

North Korea plans to increase its state budget by more than 5% this year, raising expenditures to 105.8% of last year's level. The specific budget figure remains undisclosed, as North Korea has not released total figures since 2002. The increase is expected to fund economic development initiatives and maintain defense priorities, with 15.8% of the budget allocated to national defense. This budget growth marks a shift from previous years of slow increases, with a focus on major state-led projects and housing construction since 2021.

Published Mar 26, 2026

North Korea will raise its state budget by over 5%, increasing expenditures to 105.8% of last year's level, as reported by the Rodong Sinmun. The actual budget figure is undisclosed, having not been publicized since 2002.

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The planned increase is primarily directed towards economic development, with socialist economic construction allocated 43.8% of the total budget. Additionally, 15.8% of the budget will support national defense efforts, which have remained consistent in the mid-15 percent range in recent years. These changes coincide with ongoing state-led projects and housing initiatives in Pyongyang since 2021.