Government ministries and agencies proposed a combined 390.9 trillion won ($349.5 billion) budget for next year, a 4.1 percent hike from this year, according to the Finance Ministry.

The ministries and agencies seek to spend more on defense, education and welfare while pouring less money into infrastructure.

The Defense Ministry called for 40.14 trillion won, a 7.2 percent hike, to cope with growing threats from North Korea’s nuclear and missile programs. It is the biggest budget jump requested among government ministries and agencies.

The Finance Ministry will launch consultations with relevant parties in the coming months before determining its final budget proposal. It will then submit the proposal to the National Assembly for approval by Sept. 11.