S. Korea proposes largest-ever extra budget to combat pandemic
Updated: 2020-06-03 17:07:11 KST
It's the largest extra budget in South Korea's history.
The 29-billion U.S. dollar super-budget is even bigger than those allocated during the Asian financial crisis in 1998 AND the global financial crisis in 2008.
And it's the first time in almost half a century that South Korea has allocated a third extra budget in a single year.
"The government aid is needed for businesses and small firms to overcome the crisis. This financial pump will create a virtuous cycle of financial recovery and contribute to the national economy."
The 29-billion-dollar supplementary budget comes from reallocating over 8 billion dollars of spending from other purposes, issuing 19.6 billion dollars of state bonds as well as using money from 8 local funds.
The latest supplementary budget also draws from some of the country's defense budget.
Around 2-hundred 45 million dollars will be taken this time.
It's already the second deduction from the defense ministry's budget this year.
Around 3.6 percent of the 2020 defense budget will be used to combat COVID-19, but the defense ministry has said that such a withdrawal will not affect its ability to carry out its goals and projects.
With a total of three extra budgets this year, the South Korean government will have poured 222 billion dollars into providing a financial cushion from the impact of COVID-19.
And that's equivalent to 14 percent of the country's 2020 GDP.
The government will submit the budget proposal to the National Assembly on Thursday.
After lawmakers' approval, the government plans to spend more than 75 percent of it within three months.
Kim Dami, Arirang News.