Vice Minister Gi Jae: "Caution Needed on the Speed of National Debt Increase"

Holding of the 1st Fiscal Management Inspection Meeting on the 28th

[Asia Economy Reporter Jang Sehee] An Il-hwan, Vice Minister of Strategy and Finance, stated on the 28th, "It is necessary to be aware that national debt is rapidly increasing in the process of responding to the COVID-19 crisis."

At the '1st Fiscal Management Review Meeting' held at the Government Seoul Office on the same day, Vice Minister An said, "Considering that fiscal resources are by no means unlimited, we must always keep fiscal soundness in mind."

He added, "In the case of Japan, the national debt-to-GDP ratio, which was 60% in 1990, sharply increased to 130% in 2000 and 220% in 2019. Given this, we must never be complacent."

Vice Minister An emphasized, "Limited resources must be used efficiently and appropriately without waste," and added, "In fiscal management, including budget formulation and execution, we must prepare effective fiscal operation strategies and measures to maintain fiscal sustainability with the future generation's burden in mind."

Regarding fiscal execution, he evaluated, "Both central and local finances recorded the highest fiscal execution rates ever," and said, "In the case of local finances, 66.5 trillion won more was executed compared to the previous year, greatly contributing to regional economic revitalization."