Deputy Prime Minister Hong Holds 'Foreign Press Briefing'... Mentions Finance, 4th Supplementary Budget, Growth Rate, etc.
[Asia Economy Reporter Jang Sehee] Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, said, "Just because the Organisation for Economic Co-operation and Development (OECD) has revised our growth rate upward, it does not seem that the initially expected growth rate for this year (0.1%) will change." The OECD raised South Korea's economic growth forecast for this year to -0.8% on the 11th.
On the 14th, Hong held a press briefing with foreign correspondents at the Bankers' Hall in Jung-gu, Seoul, stating, "If we avoid negative growth this year, it can be considered a considerable achievement."
He added, "When the forecast was made in June, it was based on the assumption that the COVID-19 pandemic would subside in the second half of the year, so there are significant risk factors."
Regarding the 4th supplementary budget, he expressed a negative stance. He said, "We can sufficiently cover the expenses without an additional supplementary budget, using contingency funds, etc. There is a government debt burden act of about 1 trillion won this year, which can support this." The government debt burden act refers to the government's act of assuming next year's debt in advance without securing the budget, which is only possible within the scope approved by the National Assembly in advance. He also indicated that a second round of disaster relief payments is not being considered.
On fiscal soundness, he said, "Next year, the national debt will inevitably increase due to active fiscal measures to overcome the COVID-19 crisis," adding, "While the increase in national debt is unavoidable, we are mindful of the pace."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
