<Anchor> The
government and the ruling party are discussing the second supplementary budget using this as the tax has been lifted more than expected. The government is also planning to pay off national debts with a portion of the tax collected, but the tug-of-war continues.
This is reporter Hwa Gang-yun.
<Reporter> With the
corporate economy reviving, corporate tax increases and real estate and stock transaction taxes are lifted, excess tax revenue this year is expected to reach around 30 trillion won.
Of this, 40% can be sent to local governments and local offices of education according to the law, and the remaining 20 trillion won can be used for supplementary budgeting.
The government decided to use some of this money to pay off national debt.
The plan is to reduce the existing national debt by creating an additional budget without paying more debt.
While the authorities are contemplating how much to repay, the ruling party is in a position to release more money for economic recovery rather than repaying national debts, including additional support for damage to small businesses and measures to promote consumption such as credit card cashback in the national disaster relief fund.
Considering the greatly increased national debt through the Corona 19 crisis, the argument that at least some of the debt should be paid off with additional tax revenue and
[Kim Woo-cheol/Professor of the Department of Taxation at Seoul National University: Last year, we issued too many government bonds more than necessary. Since it is more important to reduce the unnecessary increase in debt issuance, at least half should be used to pay off debt… .]
There is a strong argument that the priority is to release money to revive the spark of consumption rather than pay off debt.
[Woo Seok-jin / Professor of Economics, Myongji University: Domestic consumption is not that good. In two or three years, the order is to pay off the national debt, but I don't think that's the case now.] The
Ministry of Strategy and Finance is in a position to focus on the selective support of the victims rather than the support of all citizens, so the tug-of-war between the political parties is scheduled for the second half of this month. It is expected that this will lead to the announcement of policy direction.
(Video editing: Kim Seon-tak)