Due to the continuation of Corona 19, the 4th supplementary administration in 59 years has been officially formulated.
It has been 59 years since 1961 to organize the extras four times a year.
In March, the government organized the first supplementary budget worth 11 trillion won to respond to Corona 19, including support for Daegu and Gyeongbuk.
In April, a second supplementary supplement of KRW 12,200 billion was executed to provide emergency disaster support for the entire population of KRW 1 million based on a household of four.
Since then, as the economic hardships caused by Corona 19 continued, in July, a third supplementary supplement of 35 trillion won, the largest ever, was prepared and executed, and the fourth supplementary supplement was organized in two months.
The Ministry of Strategy and Finance was initially in a negative position on the unprecedented 4th supplementary arrangement after democratization, but after contemplating when the degree of economic damage caused by Corona 19 increased and the opposition parties demanded in one voice, it eventually made the 4th supplementary supplementary for emergency assistance to the victims. I turned the direction to organize.
However, in consideration of financial soundness and support effect, we decided to choose a method of'tweezers support' to the victims instead of paying cash to the whole people.
The fourth supplementary supplement is expected to be organized with the secondary emergency employment security subsidy for the underprivileged, such as special employment type workers, reduced sales, new fund for small business owners for small business owners, and emergency living expenses for low-income people.
The problem is finance.
Since the government has already restructured spending in the process of organizing the three supplementary accounts, it is inevitable to issue deficit government bonds when organizing the fourth supplementary budget.
If the 4th additional financial resources of KRW 7 trillion are raised through the issuance of deficit government bonds, concerns about fiscal soundness are expected to be further increased.
The government issued deficit Treasury bonds of KRW 10.3 trillion in the first supplementary, KRW 3.4 trillion in the second supplementary, and KRW 23.800 trillion in the third supplement.
After the third addition, national debt soared to 839 trillion won, and the ratio of national debt to gross domestic product (GDP) rose to an all-time high of 43.5%.
If an additional 7 trillion won in deficit government bonds is issued for the 4th supplement, the national debt will reach 850 trillion won to 846 trillion won, and the national debt ratio is also expected to rise to 43.9%.
(Photo = Yonhap News)