Ministry of Economy and Finance Actively Encourages Early Execution of COVID-19 Budget and Youth Hiring

Ahn Il-hwan, the 2nd Vice Minister of the Ministry of Economy and Finance, is delivering opening remarks at the emergency fiscal management inspection meeting held on the 23rd at the Government Seoul Office in Jongno-gu, Seoul. Photo by Kang Jin-hyung aymsdream@

[Asia Economy Reporter Jang Sehee] The Ministry of Economy and Finance notified each ministry on the 31st of the '2021 Budget and Fund Operation Plan Execution Guidelines,' which include plans to accelerate budget execution and save on current expenses for a rapid economic recovery next year.

The total government expenditure next year will be 558 trillion won, an increase of 45.7 trillion won (8.9%) compared to this year. The government has decided to execute the budget related to the response to the novel coronavirus infection (COVID-19) as early as possible. Purchases of medical and hygiene supplies, quarantine materials, and other items for COVID-19 response will also be expedited to the maximum extent.

Additionally, to support young people facing employment difficulties, the government encouraged hiring youth as assistants when commissioning research projects.

Furthermore, the temporary special provisions of the Enforcement Decree of the State Contract Act, such as expanding private contracts and shortening payment periods, have been extended until June next year.

To support balanced national development, the government will utilize balanced development indicators when selecting regional balanced New Deal public projects and hold events and meetings in the relevant local governments.

Along with this, considering the difficult economic and fiscal situation, the guidelines also notified improvements in execution methods responding to COVID-19, such as saving current expenses and encouraging non-face-to-face events and meetings. The guidelines explicitly state that non-face-to-face events can be executed using the existing event budget, and attendance fees equivalent to those for general meetings can be paid for participation in non-face-to-face meetings.

Finally, to enhance transparency and accountability in budget execution, the guidelines stipulate strengthening the management of national subsidies and special activity expenses and preparing processing guidelines for remaining balances of general grants when necessary. By utilizing the integrated national subsidy management system, periodic execution inspections of subsidies by central government agencies and local governments will be mandatory to prevent fraudulent executions such as subsidy fraud and embezzlement in advance.

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