Is the “Irreversible Temptation” Realize the National Disaster Subsidies?

The time, method, and scale are attracting attention as the politics of the nation’s disaster subsidies have become public again.

The number of citizens suffering from the prolonged corona 19 pandemic is increasing, and dissatisfaction with equity is erupting as secondary and tertiary disaster subsidies are selectively paid to the self-employed, small business owners, and the underprivileged class.

The ruling party, which is required to hold a by-election for the mayor of Seoul and the Busan mayor in April, has a memory of having fun at the 4/15 general election last year with the first national disaster support fund paid up to 1 million won per household. The power of the opposition, the people, is negative for this move, but when elections are imminent, they will also be conscious of votes.

There is no other way to finance government bonds, so controversy over fiscal soundness may arise, but if the passport is pushed, the timing is likely to be the point at which the corona gradually subsides. Some predict that if the corona is settled early, it will be April as early as April, and if it is late, it will be around June, which is combined with full-scale vaccination.

◇ Passport in case of military service

In an interview with Yonhap News, Lee Nak-yeon, head of the Democratic Party, said in an interview with Yonhap News, “If the Corona 19 situation calms down and there is a need to boost the economy, we will be able to review the distribution of disaster assistance to the whole people.” Representative Lee said that in a situation where the corona spreads, encouraging consumption can adversely affect quarantine, so it seems appropriate to pay when the spreading tax subsides.

Democratic Party Supreme Commissioner Yang Hyang-ja also said, “In addition to the 3rd disaster support package for industries and individuals suffering from extreme pain, we propose discussions for the payment of the 2nd National Disaster Compensation Fund.” “The level of comfort that should be given to the people.” He said that 1 million won is reasonable for a family of four.

Gyeonggi Gyeonggi Governor Lee Jae-myeong, the president of the passport, consistently insists on the payment of national disaster support funds. In a letter sent to 300 members of the opposition parliamentary lawmakers and Deputy Prime Minister Hong Nam-ki on the 4th, he said, “We need a bold expansion fiscal policy to overcome the crisis caused by structural low growth and Corona 19, alleviate polarization, and revitalize the economy.” Urged to pay.

In November of last year, Governor Lee sent a mobile phone message to the Democratic Party’s leadership and 178 members of its lawmakers, and insisted that it should be paid in local currency at a rate of 200,000 to 300,000 won per person to all citizens in January of the new year.

The government has been in a position that it is appropriate to provide selective support in consideration of financial resources and prolonged coronavirus, but changes in airflow are being detected.

Prime Minister Jeong Sye-gyun said in a recent media interview that the people need to live to have fiscal soundness and that the government should step forward if necessary. It is interpreted that the possibility of distributing disaster assistance to the entire population is open.

◇ The only financial resources are government bonds… Inevitable deterioration of financial soundness

Prime Minister Chung made a positive comment on the former national disaster subsidy, but the government’s official position is still unclear. If the politics strongly demands it, it is likely to take a stance while looking at the corona situation or public opinion. However, Hong Nam-ki, Deputy Prime Minister of Economic Affairs, has adhered to the opinion that it is desirable to provide tailored support to those who are suffering from high damage or difficulties in order to efficiently use limited resources whenever there is an opportunity.

The government will be compelled to be aware of the rising debt. As of the end of last year, the national debt ratio was 84.49 trillion won and the national debt ratio was 43.9%, which increased by more than 100 trillion won in a year, and the national debt ratio soared 6.2 percentage points. The fiscal deterioration is accelerating as the super budget is organized this year as well. In the first round, the entire national disaster support budget was 14,3 trillion won. If government bonds are issued again for this purpose, the rate of deterioration in fiscal soundness could be accelerated.

Experts are predominantly in opposition to the payment of national disaster support funds.

Seong Tae-yoon, professor of economics at Yonsei University, said, “As the economic stimulus effect is limited and increasing consumption is not helpful for quarantine in view of the current corona situation, the disaster subsidy is thickly provided to low-income people or those suffering from high impacts such as self-employed and small business owners It’s appropriate,” he said.

He said, “As we have already drawn up reserves this year to secure the third disaster support fund, it is inevitable to issue government bonds to secure financial resources, but it is not reasonable for the government to owe money to distribute money to those who can afford it.”

Kim Jin-bang, a professor of economics at Inha University, also said, “Former national disaster subsidies have the nature of preserving income, but we are opposed to providing them to those who have room or have not reduced their income,” he said. “Support should be focused on the underprivileged or low-income groups.” .

Regarding the economic stimulus aspect of the disaster subsidy, he said, “Now, we should focus not on stimulating the economy, but on relieving people in difficult situations. For this purpose, the government is also in the dimension of sharing the pain with those who are difficult and suffering from the whole society. “You shouldn’t be afraid to get in debt, and you should be bold enough to support the vulnerable.”

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