Input 2021.03.03 06:00
The 10th conviction to the national condolence money… Gadeok New Airport is also a choice
Officials “The choice to be recorded in the history… Deputy Prime Minister Hong must take a walk for his conviction”
“It is a way to maximize the support effect by intensively and thickly supporting the victims rather than universal support as possible.”
Hong Nam-ki, deputy prime minister of the economy and the Minister of Strategy and Finance, expressed his ’10th conviction’. In addition, the Democratic Party and the Blue House have reiterated their opposition to the support fund over the coronavirus for the whole nation.
Earlier, President Moon Jae-in met with Democratic Party leader Lee Nak-yeon and other leaders of the ruling party on the 19th of last month and said, “If the situation comes out of the corona, we can consider the payment of support money for the people to comfort the people and support for the people’s morale. I said no. This is taking into account the situation in which the national debt ratio has risen to 48.2% of GDP (gross domestic product) by issuing an additional 9 trillion won of deficit government bonds to raise the 4th disaster subsidy of 19.500 billion won. If the country’s debt is further increased to pay for the national condolence payment, the national debt ratio could reach 50% this year.
At the same time, Deputy Prime Minister Hong also left room for a step back, saying, “We will make a comprehensive judgment on the progress of quarantine, economic recovery, and financial conditions, and if necessary (disaster subsidies) will be paid.”
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Deputy Prime Minister Hong has revealed his belief in’selection support’ in relation to supplementary administration such as the 4th disaster subsidy. Deputy Prime Minister Hong Nam-ki’s stubborn opposition had a big impact on the fact that the Democratic Party’s policy of prioritizing selection support was initially promoted at the same time as supporting the citizens of the country. Democratic Party leader Lee Nak-yeon criticized Deputy Prime Minister Hong as “a really bad person,” who was negative about the expansion of the additional budget for reasons of fiscal soundness.
However, the view that it is difficult to say that Vice Prime Minister Hong’s beliefs have been perfectly kept both inside and outside the Ministry of the Ministry of Knowledge Economy. When looking at the amount of support funded at 1.95 trillion won, and the targets for which the subsidy has been lowered to street vendors and college students, criticism comes out that it is’selective support only for patterns’. In fact, it is because there is an evaluation that there is nothing different from the national payment.
The additional budget is 19.500 trillion won, which is close to 20 trillion won. Although it uses the existing budget of 4.5 trillion won, the additional budget of 15 trillion won is the third in history. 15 trillion won is more than the first disaster support budget (14.3 trillion won) in May of last year, when the disaster support was paid to the entire population.
In addition, as the ruling party is in a position to increase the amount during the parliamentary deliberation process, there is a possibility that the additional amount will increase further. As the situation is like this, there is a voice from the inside of the Ministry of Information and Technology, saying,’Keep the belief that only wounds remain.’ An official from the Ministry of Science and Technology said, “It is called selection support, but the scale of the supplementary administration has grown too large.”
With the issuance of deficit treasury bonds following this addition, the country’s debt is expected to jump to 95.9 trillion won at the end of this year and the national debt ratio to 48.2%. The Ministry of Science and Technology predicted that the ratio of national debt to gross domestic product (GDP) was 47.3% at the time of budgeting for 2021.
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Although the supplementary administration has ended, Deputy Prime Minister Hong has not been able to laugh. At the time of the briefing on the 2nd, Vice Prime Minister Hong’s expression was read as’a mountain over a mountain’. This is because it is in a situation that the review of the national consolation fund ordered by President Moon Jae-in must be undertaken at the recommendation of Representative Lee Nak-yeon. Although there was no mention of the time, scale, and method of the payment of the national condolence money, it is in fact that the 5th disaster support payment has been announced.
If the national consolation fund becomes a reality, additional financial resources of 15 trillion won or more are required compared to the total amount of national disaster subsidies last year. If this amount of support is decided, the government debt ratio will inevitably exceed 50% this year. Deputy Prime Minister Hong has expressed his belief that it is a screening aid in relation to the consolation money for the whole country, but there is a strong possibility that the belief will be weakened as in the formation of this supplementary administration.
A high-ranking researcher at a private economic research institute said, “Deputy Prime Minister Hong was able to talk about financial soundness despite being accused of being a’bad person’ because it was a problem with CEO Nak-yeon Lee.” I won’t be there.”
The same is true of the loss compensation system currently being legislated by the ruling party. Already on the 28th of last month, Democratic Party lawmaker Song Gap-seok proposed the’Lost Compensation Act’ (amendment to the Act on Protection and Support of Small Business Owners). The ruling party is planning to pass a loss compensation bill in the National Assembly in March.
This law imposes an obligation to legally support small business owners who have been damaged by the government’s quarantine measures, rather than giving them arbitrarily. As the re-proliferation of Corona 19 is repeated, the subsidies are inevitably burdensome for the government, which must continuously promote quarantine measures.
The standards for measuring losses of small business owners are also controversial. Currently, the Ministry of Information and Communication is looking at the details of the card and VAT report from the National Tax Service, but it is not easy to determine the extent of the loss due to coronavirus. In addition, even if sales decline, there are stores that have made profits by reducing costs even more, which is expected to recurring controversy over equity. A professor of economics said, “The government should use quarantine measures such as business restrictions very carefully. The problem may be re-proliferation → quarantine → subsidy formulas due to legalization.”
◇ Bureaucrats “Deputy Prime Minister Hong, we must show action to protect our beliefs”
The Blue House and the ruling party The construction of the new airport in Gadeok-do is also waiting for Hong’s choice. On the 26th of last month, the ruling party passed the’special bill for the construction of Gadeokdo New Airport’. In the special law, the phrase “The State may exempt the preliminary feasibility study despite Article 38 of the National Finance Act if it is deemed necessary for smooth business promotion”.
Although the ruling party is in a position that the preliminary waiver can be exempted, the Ministry of Information and Communication recently expressed an objection to the pre-tapping waiver clause, saying, “It is necessary to verify the validity through the pre-ta.” Deputy Prime Minister Hong also attended the report on the planning and finance committee of the National Assembly on the 16th of last month, expressing concerns about the implementation of the Legislation for Exemption.
While announcing an additional budget of close to 20 trillion won on that day, Deputy Prime Minister Hong Nam-ki once again emphasized the integrity of the war. He said, “For non-key currencies such as Korea, it is important to manage external credibility. Among OECD countries (as of 2019), the national debt ratio (average) of key currencies exceeds 100%, whereas the debt ratio of non-key currencies does not exceed 50%. It is also necessary to keep in mind that it is a level.”
Officials are raising voices that Deputy Prime Minister Hong should act to protect his beliefs, beyond just talking about his beliefs. An executive from one ministry said, “Deputy Prime Minister Hong is facing a big choice that will be recorded in the history, such as the national consolation money, the loss compensation system, and the exemption from the new airport in Gadeok Island.” “He said.
High-ranking officials from other ministries also said, “A lot of public officials and ministries are watching only the positions of the Ministry of Information and Technology and the Deputy Prime Minister.” said.
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