[Exclusive] Transition Committee: "No Second Supplementary Budget Bond Issuance"

Budget Restructuring Method Procurement Principles

[Image source=Yonhap News]

[Asia Economy reporters Ki-min Lee and Hyun-joo Lee] The Presidential Transition Committee has decided to fund this year's second supplementary budget (supplementary budget) entirely through budget restructuring, excluding the issuance of government bonds in principle. It is reported that among this year's main budget of 607.7 trillion won, not only the Korean New Deal but also the carbon neutrality budget are being considered for cuts.

A Transition Committee official said on the 23rd, "The method of raising funds through government bond issuance has been excluded in principle," adding, "We will secure funds through budget restructuring."

Earlier, President-elect Yoon Seok-yeol had officially announced the second supplementary budget plan, and the Transition Committee established the principle of a specific funding method. The Ministry of Economy and Finance stated when preparing the first supplementary budget that the issuance of government bonds would increase the national debt burden and raise concerns about fiscal soundness deterioration.

The Transition Committee is considering reviewing the Korean New Deal and the carbon neutrality budget among this year's budget. This is because they believe that for mid- to long-term project budgets, redistribution can be done sequentially from next year even if not this year.

From today, the COVID-19 Special Committee and the Economic Division 1 under the Transition Committee will hold meetings with financial ministries such as the Ministry of Economy and Finance and the Financial Services Commission to seek support measures for small business owners.

On his way to work, Transition Committee Chairman Ahn Cheol-soo said about the COVID-19 Special Committee meeting, "We will discuss compensation for losses including small business owners," adding, "Officials from related ministries and appointed special committee members will meet."