Government Disburses 93.6% of Emergency Disaster Relief Funds as of End of May

Ahn Il-hwan, 2nd Vice Minister of Strategy and Finance

[Asia Economy Reporter Kwangho Lee] The government has disbursed 93.6% (13.3 trillion won) of the 14.3 trillion won in emergency disaster relief funds as of last month. It has also executed 89.7% (8.9 trillion won) of the 9.9 trillion won allocated for major projects in the first supplementary budget.

On the 2nd, Ahn Il-hwan, the 2nd Vice Minister of the Ministry of Economy and Finance, held the 9th Emergency Fiscal Management Inspection Meeting at the Government Complex Sejong and stated, "Since the first quarter, the government has been actively managing finances by promoting the fastest early execution at the highest level ever and preparing two supplementary budgets to overcome the economic crisis triggered by the novel coronavirus infection (COVID-19)."

However, Vice Minister Ahn explained, "Since April, exports have sharply declined, and the crisis in the service industry is spreading and transferring to the manufacturing sector and employment, raising concerns about negative growth in our economy. Reflecting this, major domestic and international institutions, including the International Monetary Fund (IMF), have lowered their growth forecasts for our economy this year, making the economic outlook uncertain."

Vice Minister Ahn emphasized, "The government plans to respond with strong policy determination and full efforts to achieve positive (+) growth in our economy this year."

On the 1st, the government presented the "Second Half Economic Policy Direction" aimed at early overcoming of the COVID-19 national crisis and establishing a leading economic foundation for the post-COVID era.

This includes vigorously promoting key projects such as the Korean New Deal, quarantine and bio sectors, boldly innovating industrial and economic structures, and expanding the foundation of an inclusive nation that protects the lives of all citizens.

Additionally, the third supplementary budget bill, which will financially support these efforts, is expected to be finalized promptly and submitted to the National Assembly within this week.

Vice Minister Ahn urged, "For these proactive fiscal policies to achieve their intended results, swift and flawless execution is necessary. Financial officers of each ministry and local government should thoroughly prepare in advance so that the fiscal projects included in this third supplementary budget can be promptly implemented immediately after the National Assembly’s approval."

He added, "I also ask for thorough execution management to ensure that the projects in the already established main budget and supplementary budgets are completed without any setbacks."

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