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Hong Ik-pyo, chairman of the Democratic Party Policy Committee, said on the 16th: “If an additional budget is established this year, the national debt ratio will increase to 52-53%.” The national debt ratio is said to rise 4 to 5 percentage points from the originally forecast 48%, increasing the national debt by as much as 105 trillion won. This year, the ‘was 1,000 trillion won in government debt’ will also become a reality. It means that even if fiscal strength deteriorates to this extent, it will release money unconventionally, but there is expected to be growing criticism that “I think it is too light to increase the burden on future generations.”
President Hong appeared on KBS Radio that day and said, “This year, Korea’s national debt ratio is in the mid to late 40% range, and even more aggressive fiscal expansion policies can handle it.” He said: “If an additional supplement is added to cover disaster subsidies, the national debt ratio is expected to rise to 52-53%.”
Korea’s national debt was 84.89 trillion won at the end of last year, and the ratio of national debt to gross domestic product (GDP) was 44.2%. This year, the national debt is expected to rise to 956 trillion won and the national debt ratio to 47.8% under this budget. President Hong’s words mean that the government will further increase the national debt ratio to 52-53% by organizing the additional budget on a sufficient scale.
According to these words, the national debt by the end of this year will increase by 85 to 105 trillion won over the original plan. This equates to the national debt (109 trillion won), which is increasing over this year’s budget. Reflecting this, the national debt by the end of this year is expected to be from 1,041 trillion won to 1,061 trillion won. The point of exceeding KRW 1,000 trillion in national debt, which is expected next year, will be one year ahead.
When a moderator noted that “concerns about fiscal soundness may increase,” President Hong said, “If we increase economic growth through active fiscal policy, our fiscal strength will be better.” The denominator of the national debt ratio is GDP. Increasing GDP through fiscal policy is said to eventually reduce the national debt ratio. When a warning about accelerating debt came out last year, the ruling party’s “good debt loan” came to light once more.
Increasing the national debt by an additional 85 trillion won to 105 trillion won is equivalent to organizing an additional budget to that extent. It’s well above the original forecast of 20-30 trillion won. President Hong also presented a plan on how to complete the content of the supplementary administration.
He said: “We need to increase the amount and broaden the scope of support compared to existing disaster grants.” The third disaster support fund was paid between 1 million and 3 million won, and the plan to increase it from 2 to 6 million won was cited as an example. President Hong emphasized: “The scope of support that was limited to small business owners and small and medium-sized business owners is looking for ways to support a wide range of street vendors, tourism and travel companies, and cultural and arts organizations. .
He also suggested that he needed symptoms. President Hong argued: “When we talk about fiscal soundness, we shouldn’t just talk about cutting expenses,” he argued. “We should also talk about how to secure the sources of tax for the necessary financial expenses in a balanced way.”
Reporter Seo Min-joon [email protected]
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