The 35th Third Supplementary Budget Passed in the National Assembly Plenary Session... 9 Trillion for Employment, 1 Trillion for Gift Certificates, etc.

[Image source=Yonhap News]

[Asia Economy Reporter Park Cheol-eung] The third supplementary budget (supplementary budget) worth 35 trillion won passed the National Assembly plenary session on the 3rd. Funds will be allocated for employment stability, Onnuri gift certificates, quarantine industry promotion, and the Korean New Deal.

On the night of the same day, the National Assembly held a plenary session and passed the third supplementary budget worth 35.1 trillion won to overcome the economic crisis caused by the novel coronavirus infection (COVID-19) and prepare for the post-corona era. Of the 187 members present, 179 voted in favor, 1 against, and 7 abstained. The United Future Party did not participate, and the Justice Party abstained.

It has been one month since the government submitted the supplementary budget proposal to the National Assembly, and it was reduced by 200 billion won compared to the original plan.

This is the largest supplementary budget ever, surpassing the 28.4 trillion won supplementary budget during the global financial crisis in 2009. It is also the first time since 1972 that a supplementary budget has been prepared three times in one year.

The Democratic Party conducted reviews through standing committee and budget settlement committee meetings starting from the 29th of last month.

A budget of 9.1 trillion won was allocated to support the implementation of special employment stability measures for employment safety nets, 3.2 trillion won including an additional issuance of 1 trillion won in Onnuri gift certificates to revitalize domestic demand, exports, and the regional economy, and 2.4 trillion won for fostering the K-quarantine industry.

The Korean New Deal budget was increased by 4.8 trillion won. Of this, 2.63 trillion won is for the digital New Deal such as digitalization of social overhead capital (SOC), 1.22 trillion won for the green New Deal including building a sustainable energy base, and 1 trillion won to strengthen the employment safety net.

The government estimated that 8.92 million people will benefit from the third supplementary budget, including 3.21 million workers in employment crisis, 1.01 million small business owners, and 4.72 million people receiving quarantine support.

The government plans to hold an extraordinary Cabinet meeting on the morning of the 4th to approve the supplementary budget announcement and allocation plan, and execute more than 75% of major projects within three months.