The supplementary budget of 30.5 trillion won, prepared by the government for economic revitalization and consumption boost, has been increased by more than 9.5 trillion won during the preliminary review process in the National Assembly's standing committee. As a result, the size of the supplementary budget has approached 40 trillion won.
The budget plan has been transferred to the Special Committee on Budget & Accounts for the final adjustment process.
According to the National Assembly on the 2nd, 12 out of 13 standing committees, including defense, environment and labor, land, transport, planning and finance, health and welfare, culture, sports and tourism, agriculture, food, marine affairs, diplomacy and unification, science and technology, broadcasting and communications, administrative safety, education, and the National Policy Committee, have reviewed and voted on the supplementary budget proposal and forwarded it to the Special Committee on Budget & Accounts.
By standing committee, the education committee had the largest increase of 2.9263 trillion won. The grant-in-aid (earmarked tax) for local educational finance of 1.9982 trillion won was restored, and new allocations included 100 billion won for university student work-study scholarships, 472.3 billion won for government support for free high school education, and 128.8 billion won for free education and childcare for children aged 5.
The National Policy Committee increased expenses by 2.9143 trillion won, while ensuring that the full cost of issuing consumer coupons for recovery is borne by the national treasury. Budget for job support in areas affected by wildfires and for the establishment of a national trauma healing center for violence was also included.
The health and welfare committee increased a total of 2.0341 trillion won, including 1.6379 trillion won for health insurance support from the national treasury and 44.1 billion won for innovation support for regional base hospitals. The agricultural and marine committee increased expenses by 541.6 billion won for subsidizing the difference in electricity rates for agricultural use and special support for slaughterhouse electricity rates.
The National Policy Committee approved a new budget of 400 billion won for the 'bad bank' funded by the Korea Asset Management Corporation (KAMCO), enabling the full-scale promotion of the long-term arrears debt disposal program. In this process, both ruling and opposition parties engaged in heated debates over moral hazard and fiscal soundness, and related concerns were reflected in accompanying opinions.
Additionally, the culture, sports and tourism committee increased its budget by 426.6 billion won, the environment and labor committee by 393.6 billion won, the science and technology committee by 149.2 billion won, the defense committee by 99.2 billion won, and the diplomatic committee by 3.7 billion won.
The increased amount of the supplementary budget may be adjusted during the review process of the Special Committee on Budget & Accounts. In fact, during the first supplementary budget, more than 2 trillion won was increased in preliminary review by the standing committees, but after adjustments in the Special Committee on Budget & Accounts, the net increase was only 1.6 trillion won.
The Democratic Party plans to process the supplementary budget proposal by the 4th, the last day of the June extraordinary National Assembly, while the People Power Party holds the position that fiscal soundness should be considered.