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2nd Round of 2020 Supplementary Budget Proposal

  • DivisionBudget Office - Budget Policy Division
  • DateApril 16, 2020
  • Tel0442157130

2nd Round of 2020 Supplementary Budget Proposal

 

Another Extra Budget Proposed to Finance Emergency Relief

 

 

The government proposed another extra budget worth 7.6 trillion won to finance the emergency relief payment announced on March 30 at the presidential emergency economic council meeting.

 

1) 2nd Round of 2020 Supplementary Budget

 

- Purpose: Finance the emergency relief payment

- Amount: 7.6 trillion won

- Sources of finance: Use budgets and investments suspended due to the COVID-19 pandemic, public sector costs saved and borrowings from public funds

 

(trillion won, %)

 

2019

Original Budget

2020 Budget

Change (B-A)

Original¹

Supplementary (A)²

Supplementary

(B)²

Total Revenues

(y-o-y, %)

476.1

(6.5)

481.8

(1.2)

481.6

(1.2)

482.1

(1.3)

0.5

Total Expenditures

(y-o-y, %)

469.6

(9.5)

512.3

(9.1)

523.1

(11.4)

527.2

(12.3)

4.0

Consolidated Fiscal Balance

(% to GDP)

6.5

(0.3)

-30.5

(-1.5)

-41.5

(-2.1)

-45.0

(-2.3)

-3.5

(-0.2%p)

Consolidated Fiscal Balance without Funds

(% to GDP)

-37.6

(-1.9)

-71.5

(-3.5)

-82.0

(-4.1)

-85.6

(-4.3)

-3.5

(-0.2%p)

Government Debt

(% to GDP)

740.8

(37.1)

805.2

(39.8)

815.5

(41.2)

815.5³

(41.2)

-

(-)

1. Drawn up according to nominal growth outlook of 3.8 percent

2. Drawn up according to nominal growth outlook of 3.4 percent

3. 812.6 trillion won (41.0% to GDP) on the basis of 2019 government account

 

2) Emergency relief payment

 

- A total of 14.78 million households in the bottom 70 percent income bracket to receive the relief

- An up to 1 million won payment in local governments’ online and offline gift certificates to be handed out to each household

- Payments to vary according to the size of households: 0.4 million won (single-person households), 0.6 million won (two-person households), 0.8 million won (three-person households), 1.0 million won (four-person households)

- A total of 9.7 trillion won to be spent:  7.6 trillion won to be funded by central government and 2.1 trillion won by local governments

 

 

3) Sources of finance (7.6 trillion won)

 

Spending restructuring and public sector costs saved (3.6 trillion won)

 

- Developing country aid programs suspended due to the lockdown (0.3 trillion won)

- Public projects suspended (2.0 trillion won)

- Public sector costs saved:  Labor costs (0.7 trillion won) and government complex construction costs (0.1 trillion won)

- Energy costs saved due to falling oil prices (0.2 trillion won)

- KTB yield payments saved due to falling market interest rates (0.3 trillion won)

 

Borrowings from public funds (4.0 trillion won)

 

- Public funds saved due to the weak won (2.8 trillion won)

- Housing funds (1.2 trillion won)

 

Please refer to the attached pdf

 


 

Ministry of Economy and Finance
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