Korean Cabinet OKs W11tr supplementary budget

[THE INVESTOR] The Cabinet on July 22 approved an 11 trillion won (US$9.7 billion) supplementary budget to fund the  government’s economic stimulus measures.

Along with the supplementary budget, the government plans to increase investment and spending by state-run companies and financial institutions to roll out economic stimulus measures to the scale of 28 trillion won.

The supplementary budget will be submitted to the National Assembly on July 26. The bill will then be reviewed by concerned committees and then put to the plenary session scheduled for Aug. 12. 

Of the 11 trillion won, 1.2 trillion won will be used to repay government debt, and the remainder will be used for expanding government spending.

The supplementary budget will be raised with the surplus from last year’s and this year’s tax account. 


See also : -Extra gov’t budget plans since 2000 
            
                  -State-run banks to receive W1.4tr injection

                 -Main opposition links supplementary budget bill to free child care

Support for corporate restructuring and job creation-related issues will each receive 1.9 trillion won from the supplementary budget. Measures for stimulating provincial economies and strengthening provincial government’s finances will receive 2.3 trillion won and 3.7 trillion won, respectively.

The government estimates that 68,000 new jobs will be created through the supplementary budget, and other economic stimulus measures that will be executed through state-run companies and financial institutions.

This year’s supplementary budget is the fifth largest in terms of the amount, and the second largest when only the additional government spending is compared to previous years.

By Choi He-suk (cheesuk@heraldcorp.com)