South Korea on Friday outlined an 11.8 trillion-won ($10.5 billion) extra budget plan designed to prop up its economy that is being dragged down by weak consumption and fallout from the Middle East Respiratory Syndrome outbreak.

The plan that is part of a much larger 22 trillion-won economic stimulus package aimed at helping Asia's fourth-largest economy grow at a clip of more than 3 percent this year and laying the foundation for more robust growth in 2016, the finance ministry said.

The extra budget plan passed by the Cabinet will be submitted to the National Assembly on Monday. President Park Geun-hye's administration hopes that lawmakers will give their approval around July 20, so funds can be released in early August.

"The extra budget can revitalize the economy and stabilize the livelihoods of ordinary people who have been affected the most by the fallout from MERS and prevent a sharp drop in consumer spending," said Vice Finance Minister Bang Moon-kyu.

The ministry expects the supplementary budget, along with other measures, to bolster the economic growth by 0.3 percentage point this year and 0.4 percentage point in 2016.

The government forecast the economy will grow 3.1 percent this year and 3.5 percent in 2016.

According to the ministry, of the proposed amount, 5.6 trillion won will be used to make up for the tax revenue shortfalls caused by the sluggish economy, with 6.2 trillion won to go directly to helping people and businesses.

Financial support will be provided to hospitals and clinics so they can update their facilities to deal with contagious diseases in the future, with funds going to cover losses caused by a sharp drop in patients since June that is making it hard for some hospitals and clinics to stay afloat.

The extra budget proposal showed that 2.5 trillion won will be also used to deal with MERS-related challenges facing the country.

Some 1.6 trillion won will be set aside to help tourism and other service sectors, as well as small and medium-sized enterprises that have seen sharp drops in sales due to the MERS scare, according to the ministry.

In addition, of the total, 800 billion won will be used to help farmers and businesses hurt by the recent drought, with funds also being allocated to refurbish reservoirs and dams, which have not received much support in the past.

Separate from the supplementary budget, the government said it will aggressively encourage public companies to make large-scale investments, and by tapping into state-run funds, make it possible for 3.1 trillion won to be spent to further create growth opportunities.

Besides this, the government's broad plan calls for increasing investments in local credit guarantee firms, insurers and credit agencies, which will nudge these institutions to provide up to 4.5 trillion won in fresh liquidity.

"Combined, the goal is to inject some 22 trillion won into the economy in the coming months," Bang said.

The official said the extra budget along with additional funds could translate into some 124,000 new jobs being created overall, including some 66,000 for young people and 33,000 jobs for underprivileged senior citizens.

The latest move will push up central government debt 1.8 percentage points to 37.5 percent of the GDP, according to the ministry.

The supplementary budget is the 11th to be requested by the government since 2000. The extra budget comes on top of the 375.4 trillion-won annual budget for 2015. (Yonhap)