2021 Supplementary Budget Proposal
Supplementary Budget worth 15 Trillion Won Drawn up amid Prolonged Social Distancing
The government has drawn up a 15 trillion won worth of supplementary budget to help Koreans suffering prolonged social distancing and support the country’s vaccine rollout. A total of 19.5 trillion won, including the supplementary budget, is planned to be spent on the COVID-19 support as 4.5 trillion won of this year’s original budget will be utilized to help small businesses with carrying out operations and retaining employment.
1. 2021 Supplementary Budget
(trillion won, %)
|
|
2020 Budget
|
2021 Budget
|
Change
|
|
Original (A)
|
Extra
|
Original (B)
|
Extra (C)
|
C-B
|
C-A
|
|
Total Revenues
(y-o-y, %)
|
481.8
(1.2)
|
470.7
(-1.1)
|
482.6
(0.2)
|
483.4
(0.3)
|
0.8
|
1.6
|
|
Total Expenditures
(y-o-y, %)
|
512.3
(9.1)
|
554.7
(18.1)
|
558.0
(8.9)
|
573.0
(11.9)
|
15.0
|
60.7
|
|
Consolidated Fiscal Balance
(% to GDP)
|
-30.5
(-1.5)
|
-84.0
(-4.4)
|
-75.4
(-3.7)
|
-89.6
(-4.5)
|
-14.2
(-0.8%p)
|
-59.1
(-3.0%p)
|
|
Government Debt
(% to GDP)
|
805.2
(39.8)
|
846.9
(43.9)
|
956.0
(47.3)
|
965.9
(48.2)
|
9.9
(0.9%p)*
|
160.7
(8.4%p)
|
* 0.9%p = 0.5%p (due to the supplementary budget) + 0.4%p (due to revised growth outlook)
2. 2021 Supplementary Budget Proposal plus Funding by the Original Budget
(trillion won)
|
Supplementary budget
|
15.0
|
|
|
1. Relief package for small business owners and workers of around 5.64 million
|
(8.1)
|
- Small business emergency relief[1] (6.7 trillion won)
- Three month waiver of electricity charges for small businesses (0.2 trillion won)
- Employment support for workers outside the employment insurance program (0.6 trillion won)
- Low-income household support (0.6 trillion won)
|
|
2. Employment package for around 810,000 workers
|
(2.8)
|
- Expand employee retention subsidies and loans (0.3 trillion won)
- Help create jobs for young adults, middle-aged and women (2.1 trillion won)
- Promote demand-driven job training and provide job seeker services for young adults and women (0.2 trillion won)
- Flexible workhours and paid childcare leave for woman employees, and low-cost loans for low income earners (0.2 trillion won)
|
|
3. Vaccine rollout
|
(4.1)
|
- COVID-19 vaccination (2.7 trillion won)
- Virus prevention, including testing, quarantine and treatment (0.7 trillion won)
- Make up for losses incurred to medical institutions (0.7 trillion won)
|
|
Funding by the original budget
|
4.5
|
|
|
1. Financial support for 220,000 SMEs and small businesses
|
(2.5)
|
- Emergency loans and guarantees (1.4 trillion won), cash relief (0.6 trillion won), and coupons and vouchers to boost sales, retrial-after-failure support and leisure industry support (0.5 trillion won)
|
|
2. Employee retention support for 140,000 business owners
|
(1.8)
|
- Provide SMEs and startups with low-cost loans for retaining employees, hiring young adults and creating jobs
|
|
3. Low-income earner support for 100,000 households
|
(0.2)
|
- Emergency government assistance and daycare support for working parents (0.14 trillion won) and facilities for testing and treating coronavirus (0.05 trillion won)
|
|
Total
|
9.5
|
|
The 2021 supplementary budget proposal will be submitted to the National Assembly on March 4 after proceeding through the cabinet meeting.
Please refer to the attached pdf
