Jeon Nam-do Councilor Kang Jeong-hee: "COVID-19 Supplementary Budget Resources Should Be Allocated from Disaster-Related Funds"

Kang Jeong-hee, Jeonnam Provincial Assembly Member

[Asia Economy Honam Reporting Headquarters Reporter Kim Chunsu] Kang Jeonghee, a member of the Jeonnam Provincial Assembly, issued a press release on the 26th urging that the supplementary budget funds be secured from the net surplus and various disaster-related funds to reflect the government’s supplementary budget related to COVID-19, and to support small business owners and self-employed individuals for citizen stability, disaster recovery, and revitalization of the local economy.

The scale of the supplementary budget prepared by Jeonnam Province is 212.7 billion KRW, of which government support includes 118.5 billion KRW in national subsidies and 3.9 billion KRW in special grants, totaling 122.4 billion KRW.

Among this supplementary budget, Jeonnam Province’s own burden is 90.3 billion KRW. Jeonnam plans to cover the supplementary budget funds with 25 billion KRW from the Disaster Relief Fund, 15.3 billion KRW from the Disaster Management Fund, and the remaining 50 billion KRW through local bonds.

However, according to Local Finance 365 and Jeonnam Province’s settlement data, the net surplus from 2019 available as revenue for this year is 314.7 billion KRW, of which about 30% is usually allocated to the local bond repayment fund, and the remainder can be used for supplementary budget funds and other purposes.

The Disaster Management Fund and Disaster Relief Fund are legally mandated reserve funds to be used in times of disaster. All metropolitan and basic local governments maintain a Disaster Management Fund, and all metropolitan governments maintain a Disaster Relief Fund.

Additionally, following the amendment of the enforcement decree at the end of 2019, the Disaster Management Fund, which was previously restricted to specific uses under a positive system, is scheduled to be actively utilized starting in April. Cities such as Seoul, Gyeonggi-do, Jeonju, and Yeosu are also using the Disaster Relief Fund as a resource for disaster allowances.

As of March 23, the current balance of the Disaster Management Fund operated by Jeonnam Province and its 22 cities and counties is 118.7 billion KRW, and Jeonnam Province’s Disaster Relief Fund is approximately 26.3 billion KRW.

Assembly member Kang Jeonghee emphasized, “Given that all citizens are suffering under a national disaster state due to the COVID-19 crisis causing real economy and economic downturn and consequent income reduction, it is time to seriously discuss the introduction of a basic disaster allowance. However, it is important for local governments, where balanced budgets are a principle, to have measures for securing funds.”

She continued, “To revive the struggling lower-income economy on the brink of collapse, Jeonnam Province’s available finances should be prioritized and allocated to proactive projects with significant ripple effects. Since these funds can be used faster and more conveniently than contingency funds in the event of an unforeseen disaster, the legally prescribed minimum amount must be secured and reserved, and Jeonnam Province’s disaster-related funds should be used as supplementary budget resources,” she proposed.

She also stated, “In fact, in the cases of Chungnam and Gangwon provinces, funds from the regional development fund are planned to be borrowed into the general account for emergency support funds. Jeonnam Province’s regional development fund had a balance of approximately 995.2 billion KRW at the end of 2019. Although the regional development fund is necessary to efficiently promote regional development projects, given the current emergency situation, it should be actively utilized as a resource for COVID-19 response,” she expressed.

Meanwhile, the Jeonnam Provincial Assembly is scheduled to hold an extraordinary session on the 3rd of next month to review and approve Jeonnam Province’s supplementary budget proposal.

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