Next year’s budget of 558 trillion won and 70% of the first half will be executed … Public debt amounts to 47.3% of GDP

Ticket 2020.12.02 22:30 | Revision 2020.12.02 22:39

The National Assembly held a plenary session on the 8th and confirmed next year’s budget at 558 trillion won, an increase of 2.2 trillion won compared to the government’s draft. The National Assembly increased 7.5 trillion won, including 3 trillion won for Corona 19 damage support, and reduced 5.30 trillion won. Consequently, the consolidated fiscal balance is expected to increase by 2.5 trillion won to 75.4 trillion won compared to the government’s proposal, and the national debt is projected to increase by 3.5 trillion won to 956. trillion won. The state debt is 47.3% of the gross domestic product (GDP).

First, the government will invest 3 trillion won in the budget for personalized support (third disaster support fund) to the business class affected by the third crown spread19. Disaster grants were organized by putting them on the reserve for specific purposes. It was decided to discuss the support objective, the payment amount and the disaster grant support method later.

It also secured an additional 900 billion won to insure the Corona 19 vaccine for 44 million people. With this, a total of 1.3 trillion won was secured for the introduction of vaccines overseas. The Ministry of Strategy and Finance decided to operate a joint clinical trial review committee to verify the safety of vaccines and establish a national verification infrastructure.

The Ministry of Science and Technology is also installing a new hospital specialized in infectious diseases according to Corona 19. The completion of the three hospitals specialized in infectious diseases established in the area will be brought forward one year from 2024 to 2023. Currently, the hospitals that specialize in infectious diseases in the area are Chosun University Hospital (Honam), Yangsan Hospital of Busan University (Yeongnam) and Cheonan Hospital of Sooncheonhyang University (Jungbu). In addition, it plans to continue the public offering procedure at a later time to build an additional site by investing 15.8 billion won. In addition, 25.4 billion won will be invested in temporary living expenses and quarantine treatment to detect and isolate infected people.

The government invests 700 billion won to ensure housing stability for ordinary people. By 2022, it has decided to supply 114,000 rental homes (71,000 units in the metropolitan area, etc.) nationwide, including contracts for the sale of new construction and public rental housing. Next year, 680 billion won will be invested to provide 19,000 rental homes to low-income and middle-class people. Additionally, the supply of 4,000 mid-size rental homes also increased by 10.9 billion won.

In response to climate change by achieving carbon neutrality (Net-Zero), it increased 300 billion won. An increase of 4.5 billion won was added to support operating expenses for hydrogen charging stations and the expansion of high-speed electric chargers. 35.6 billion won are also spent on low-pollution measures, such as old diesel vehicles, which are considered the main culprits for greenhouse gases, and the expansion of pilot distribution.

700 billion won were increased to strengthen the social safety net. The government decided to increase the cost of child care rates for children 0-2 years to strengthen support for private and family day care centers. The cost of support for child care fees for age 0 will increase from 999,000 won to 1,012,000 won per month, and from 706,000 won to 713,000 won for one year. Childcare fees for ages 3 to 5 will increase by 20,000 won from 240,000 won this year to 260,000 won next.

300 billion won will also be invested in supporting the work environment of essential workers and maintaining and expanding work. First, it decided to invest 22.3 billion won in the ‘Tomorrow’s Professional Employment Project’, which provides short-term jobs to 5,000 low-income people. In preparation for the prolonged employment impact caused by Corona 19, the job maintenance allowance was also extended to 100,000 people. 181.4 billion won is spent here.

In addition, 6.7 billion won will be invested in personalized occupational health checkups for essential workers who are susceptible to infections or rapidly increasing their workload due to Corona 19. 500,000 won will be temporarily provided to visiting and care workers who they have been marginalized from corona emergency support. About 90,000 people are expected to benefit, with a budget of 46 billion won.

A government official said: “We plan to allocate more than 70% of the total spending budget next year in the first half of the year to support the early recovery of economic vitality.” said.