"Budget Cuts Needed to Secure Funds for Korean New Deal and Others"
[Asia Economy Reporter Lim Chun-han] Former People Power Party lawmaker Yoo Seung-min proposed on the 27th, "Let's provide the third disaster relief fund in a stepped manner to all households in the bottom 50% income bracket."
On Facebook that day, Yoo said, "I strongly agree that national finances should be used to help citizens who are suffering severe difficulties due to the COVID-19 crisis. However, how to do it and how to secure the funds are important," he said.
Yoo explained, "Let's provide the relief to all households in the bottom 50% income bracket in a stepped manner: 1.5 million won for households in the bottom 20% based on a family of four, 1 million won for households in the 20-40% bracket, and 500,000 won for households in the 40-50% bracket. This means providing differentiated support according to income to about 10 million households in the bottom 50%. The reason for the stepped approach is to help those who are more in need more."
Yoo pointed out, "Those struggling to make a living are not concentrated in specific industries. If 3.6 trillion won is only provided to certain industries, the blind spots in support will be too large."
Yoo added, "The method I proposed requires a budget of about 7 trillion won, which is twice the 3.6 trillion won, but the effect of practically and comprehensively helping those in need will be much greater. This budget should not increase the 555 trillion won government budget plan but should be secured by boldly cutting wartime-style budgets such as the Korean New Deal to avoid further damaging fiscal soundness."
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