SEOUL, April 8 (Yonhap) -- North Korea's parliament dramatically increased a budget for major construction projects as Pyongyang prepares to throw a massive celebration next year, Seoul said Friday.

   North Korea has vowed to achieve its goal of becoming a "great, prosperous and powerful country" by 2012, the centennial of the birth of its late founder Kim Il-sung, father of current leader Kim Jong-il.

   The legislature endorsed 567 billion (North Korean) won (US$5.73 billion) for this year's total budget in a session on Thursday, according to the Unification Ministry, which handles inter-Korean affairs in Seoul.

   The budget for construction projects jumped by 15.1 percent from last year as the North plans to build 100,000 houses in Pyongyang and a massive power plant in the country's northwest region, said the ministry.

   The North also earmarked 15.8 percent of the total state budget for national defense this year as it did last year, said the ministry.

   North Korean Premier Choe Yong-rim vowed to strengthen military capabilities, improve economy and increase grain production amid the country's chronic food shortages.

   The cabinet "will make sustained great efforts for the provision of materials needed for boosting the combat capability of the People's Army and the defense capability of the country in every way," Choe said at the session.

   Last year, the North recorded a fiscal surplus of 7.3 billion (North Korean) won, said the ministry.

   North Korea's official Korean Central News Agency also reported on the country's spending and budget, though it didn't give any monetary figures.

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