Koo Yoon-chul, Deputy Minister of Economy and Finance, "Strongly Promote Early Execution of Jobs and SOC Budget"

37% of Early Execution Target for Job Projects in Q1 Completed
Direct Job Projects for Vulnerable Groups to Promote Early Hiring from January
SOC Projects Planned for 29% Execution in Q1 and 60.5% in First Half of the Year

[Image source=Yonhap News]

[Asia Economy Reporter Kim Hyunjung] Koo Yoon-cheol, Vice Minister of Strategy and Finance, announced on the 10th that he will vigorously promote early execution in key management areas such as jobs and social overhead capital (SOC) to boost economic vitality.

In his opening remarks at the '2020 1st Fiscal Management Inspection Meeting' held at the Seoul Government Complex, Vice Minister Koo said, "To create momentum for economic rebound this year and to maximize the effect of the expansively budgeted funds in response to downside risks, active and swift execution must be accompanied." The meeting was held earlier than in previous years (January 28, 2019, January 26, 2018) to manage fiscal execution, with 30 participants including key officials from related ministries.

He emphasized, "To avoid repeating the sluggish government growth contribution in the first quarter last year, we must make every effort to accelerate fiscal execution from the first quarter." He added, "Accordingly, for the total management scale of 554.5 trillion won (provisional), early execution targets for central finance, local finance, and local education finance will be raised by more than 1 percentage point compared to the previous year and pursued."

In particular, he expressed the intention to actively set first-quarter execution targets and strengthen management from the beginning of the year. The plan is to vigorously promote early execution in key management areas directly linked to boosting economic vitality, such as jobs and SOC.

Vice Minister Koo explained, "Job projects will execute 37% of the early execution target in the first quarter and 66% in the first half of the year. Direct job projects for vulnerable groups will begin early recruitment from January, following recruitment procedures started in December last year." He added, "For SOC projects, we will complete preliminary procedures as much as possible in January and February and execute 29.0% in the first quarter and 60.5% in the first half."

He also announced plans to timely execute inclusive welfare budgets alongside early budget execution. He said, "Since the three pension laws were passed at yesterday’s National Assembly plenary session, the expanded and extended benefits under the revised laws must be delivered to recipients without disruption." He stressed, "We will check welfare budget execution plans and performance monthly through future fiscal management inspection meetings to ensure major welfare benefits such as livelihood benefits, medical benefits, and child allowances are paid as planned."

Previously, the amendment to the National Pension Act extended the support period for pension insurance premiums for farmers and fishermen by five years until December 31, 2024. The Basic Pension Act was also amended to expand the monthly 300,000 won payment target from the bottom 20% income group to 40%, providing an additional monthly pension of 50,000 won to 1,625,000 people. Furthermore, the amendment to the Disabled Pension Act expanded the monthly 300,000 won payment target to include recipients of housing and education benefits and the near-poor class, providing an additional monthly pension of 50,000 won to 16,000 people.

This content was produced with the assistance of AI translation services.