The government has drawn up its second supplementary budget worth 59.4 trillion won this year, of which 36.4 trillion won is allocated to improve people’s livelihoods.
- Compensate small business owners hit hard by the pandemic (26.3 trillion won)
- Ensure proper pandemic control and support the gradual transition to the general healthcare system (6.1 trillion won)
- Work to stabilize people’s livelihoods and to deal with challenges such as inflation and natural disasters (3.1 trillion won)
- Increase the reserve funds to prepare for potential risks to the economy (1.0 trillion won)
The remaining 23.0 trillion won is earmarked to improve local government finance by utilizing excess tax revenues.
Source of finance
The government plans to finance a 59.4 trillion won worth of the second supplementary budget of 2022 without government bond issuance. The expenditure plan is designed to make use of 8.1 trillion won of available financial resources including budget surpluses and public fund reserves, 7.0 trillion won financed through expenditure restructuring, and 44.3 trillion won of excess tax revenues¹.
¹ Excess tax revenues worth 53.3 trillion won, of which 44.3 trillion won is allocated for the supplementary budget and 9.0 trillion won is for the government debt repayment