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Main contents of the 2021 budget increase in the National Assembly
The budget for next year, confirmed on the 2nd, is 558 trillion won, a super super budget, an increase of 2.2 trillion won compared to the government draft. The government budget was reduced by 5.3 trillion won and spending increased by 7.5 trillion won. It has been 11 years since the 2010 budget that the government budget bill was net increased by the National Assembly.
The main cause of the budget change was the third spread of the new coronavirus infection (Corona 19). The government has decided to allocate 3 trillion won for personalized damage assistance (third disaster support fund) in accordance with the spread of the crown and invest 900 billion won for the purchase of Corona 19 vaccine.
However, as the budget for next year was increased by 2.2 trillion won compared to the original to answer to the crown, the national debt increased to the highest level in history.
Both the national debt and the debt ratio are the highest in history
With the budget cleared that day, the national debt is expected to reach 956 trillion won next year.
The government estimated the national debt to be 945 trillion won at the time it introduced the budget bill in September. However, the government debt increased further after the fourth additional correction budget of 7.5 trillion won for the payment of the second disaster support fund and the deliberation of the National Assembly.
With the decision to issue more deficit Treasuries this time, the number of deficit Treasuries issued next year from 89 trillion won initially increased to 93 trillion won. The ratio of national debt to gross domestic product (GDP) was 47.3%, an increase of 0.2 percentage points over the current budget.
With the Moon Jae-in administration’s continuing expansionary fiscal policy stance, the government increased the budget to respond to the unexpected Corona 19 crisis, and both the national debt and the national debt-to-GDP ratio reached record highs.
3 trillion in support of crown damage … 300 billion in carbon neutral support
Of the 7.5 trillion won increase, 3 trillion won will be used as support funds for industries and classes affected by the third crown differential. The goal, size and method of support are still undecided.
Vice Premier Hong Nam-ki and the Minister of Strategy and Finance said: “A specific payment plan has been created early next year, and our aim is to pay it off before the Lunar New Year holiday as much as possible.”
The COVID-19 vaccine purchase budget, which attracted attention, increased by 900 billion won. When you combine the 360 billion won already secured for this year’s fourth supplemental budget, it is approximately 1.3 trillion won, which the National Assembly and the government expect to secure 44 million vaccines. In addition, 3 infectious disease specialty hospitals were completed in the area by 2023, and an additional 50.4 billion won was added to strengthen infectious disease response capacity.
The budget for the implementation of the pregeneration measures announced last month was allocated at 680 billion won. This reflects the budget required to increase the number of rental homes by 19,000 units next year. The invested budget will be provided in the form of purchase agreements, non-residential vacancy remodeling, public charter, semi-home charter conversion, and middle class rental housing. The budget to lay the foundation for achieving ‘carbon neutrality (net zero) by 2050’ has also increased by 300 billion won.
Although he promoted the ‘public welfare’, not a few traces of the political interests of the opposition parties remain on his back. Gadeokdo, which is criticized for being aware of the Busan mayor’s by-elections in April next year, has also increased the cost of research and service to review the adequacy of the new airport by 2 billion won, as claimed by the Democratic Party. The design cost for the construction of the King Sejong National Assembly Building, which may affect public sentiment in the Chungcheong region, also increased by KRW 11.7 billion.
As the National Assembly handled the budget for next year, each ministry’s budget was confirmed one after another. The defense budget was confirmed at 52.84 billion won, an increase of 5.4% from the previous year, and is characterized by reflecting the budget for soldiers’ masks of 48.8 billion won due to the prolonged Crown. 19. The Ministry of Science and ICT budget was set at 17.5 trillion won, an increase of 7.4% (1.2 trillion won) from this year, of which 1.93 trillion won. will be invested in the Korean version of the New Deal. Of the Financial Services Commission’s budget of 3.9 trillion won for next year, the Korea Development Bank’s investment to create the New Deal Fund was staged at 510 billion won.
Jaeyong min reporter [email protected]
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