The rival parties continued to discuss the government's budget proposal for next year on Tuesday, and appeared to have resolved many of their differences.

The 387.7 trillion won ($333 billion) budget for 2016, larger than the 375.4 trillion won that was earmarked for 2015, was submitted by the government in September.

The 2016 budget bill will be tabled at the National Assembly's plenary session slated for Wednesday, the deadline set by the Constitution.

"Most of the issues have been wrapped up through negotiations this morning," said a ruling party lawmaker of a parliamentary budget committee, requesting not to be named.

The parties plan to hold multiple meetings just before Wednesday's session, and plan to table a revision of the government's proposal before putting it to a vote.

The compromise plan is likely to be around 387.6 trillion won, 100 billion won less than the government's proposal.

The Assembly is notorious for its end-of-year tug-of-war over the government's budget for the following year, with rival parties often clashing over items on the bill that sometimes lead to physical fights as well as sit-ins inside Parliament.

Last year, the National Assembly passed the government's 2015 budget bill, meeting the legal deadline for the first time in 12 years. (Yonhap)