[Sejong=Asia Economy Reporter Kim Hyunjung] The budget for next year, increased by 2.2 trillion won from the government's proposal to a total of 558 trillion won, was approved and finalized at the National Assembly plenary session on the 2nd. This amount reflects an increase of 7.5 trillion won and a decrease of 5.3 trillion won compared to the government's total expenditure proposal.
The Ministry of Economy and Finance announced on the same day that the total expenditure increased at the National Assembly stage to respond flexibly and timely to the resurgence of the novel coronavirus infection (COVID-19). This net increase in total expenditure is the first occurrence in 11 years since 2010. Previously, net increases of 700 billion won in 2009 and 1 trillion won in 2010 were recorded at the National Assembly stage.
During the budget review process, the Ministry explained that the ruling and opposition parties minimized the increase in national debt by expanding the scale of possible cuts. The reduction scale of next year's budget (5.3 trillion won) significantly increased compared to previous years, which was around 4 trillion won.
Additionally, a characteristic of this review process was that the examination focused mainly on policy projects. The National Assembly's budget increases were concentrated on tailored support for COVID-19 damage, securing vaccine supplies, preemptive investments for 2050 carbon neutrality, childcare and care services, and support for vulnerable groups such as veterans and persons with disabilities.
It is also notable that the budget bill was passed within the legal deadline (December 2), marking the first time in six years since 2015.
Meanwhile, the government plans to thoroughly prepare in advance so that the 2021 budget can be immediately deployed from January 1 next year to overcome COVID-19 and to accelerate economic recovery.
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