Disaster Relief Fund Confirmed at 12.2 Trillion Won... Deficit Bonds to Be Issued at 3.4 Trillion Won

Expenditure Restructuring of 8.8 Trillion Won... Additional Cuts to Civil Servants' Annual Leave Compensation

[Image source=Yonhap News]

[Asia Economy Reporter Jang Sehee] The supplementary budget (supplementary budget) for the payment of emergency disaster relief funds has been decided at 12.2 trillion won, an increase of 4.6 trillion won from the original 7.6 trillion won submitted by the government.

In the early morning of the 30th, the second supplementary budget bill for the payment of emergency disaster relief funds to all citizens passed the plenary session of the National Assembly.

The scale of expenditure restructuring increased by 1.2 trillion won from the government proposal to 8.8 trillion won. The remainder plans to issue deficit bonds (3.4 trillion won).

As a result, the national debt increased to 819 trillion won, and the national debt ratio to GDP rose from 41.2% to 41.4%. After the second supplementary budget, this year's managed fiscal balance deficit is 89.4 trillion won, and the managed fiscal balance deficit ratio to GDP is 4.5%.

Details of additional cuts during the National Assembly review process include ▲ reduction adjustments for projects with execution difficulties such as national roads, railways, and airports (214.4 billion won) ▲ additional cuts in personnel expenses such as annual leave compensation for 34 ministries (82.2 billion won) ▲ additional cuts in fuel expenses for the military, coast guard, and police (73.3 billion won), etc.

Some funds were also adjusted. The deposit scale of the Public Fund Management Fund (Gongja Fund) of the Housing and Urban Fund will be increased by 490 billion won. In addition, 27 billion won of contributions from the Korea Student Aid Foundation will be additionally recovered.

The Ministry of Strategy and Finance stated, "To minimize the shock to our economy caused by the novel coronavirus infection (COVID-19) and to return to the normal track as soon as possible, we plan to promptly prepare the third supplementary budget bill."

Meanwhile, the government plans to convene a Cabinet meeting on the morning of the 1st of next month to submit and approve the supplementary budget announcement and allocation plan.

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