Deputy Prime Minister Hong “need to watch out for the pace of debt growth”
Deputy Prime Minister Hong Nam-ki and Minister of Strategy and Finance are attending the 3rd Innovation Growth BIG3 Promotion Meeting held at the Seoul Government Complex on the 21st. yunhap news
Deputy Prime Minister Hong Nam-ki and Minister of Strategy and Finance said on the 22nd that “Financial is not a matter of fire” and indicated that excessive budget should not be invested in compensation for the losses of self-employed persons. It seems that it is publicly rebelled against Prime Minister Jeong Sye-gyun, who criticized the Ministry of Finance for being “passive against financial expenditure”.
Deputy Prime Minister Hong said on Facebook that day, “There is no disagreement on the proposition that finance should play an active role as the last bastion in the event of a national crisis,” he said. “Because finance is not a fire, the financial situation and financial conditions are among important policy variables to be considered. You have to always remember that it is one.”
Deputy Prime Minister Hong said, “The ratio of national debt to gross domestic product (GDP) was 39.8% at the time of budgeting in 2020, and ‘40% controversy’ was raised. It is expected to exceed the percentage,” he stressed, “It is expected to be around 59% in 2024.”
He added, “It is necessary to be wary about the rate of increase in national debt rather than the level of the absolute scale of national debt,” he added. “The perspective of foreign investors and national credit rating agencies who are watching the increase in national debt can never be neglected.” . He stressed the need to be wary of excessive fiscal expenditure while taking the rate of increase in the debt ratio as a problem.
However, Deputy Prime Minister Hong made it clear that he would participate in the institutionalization of loss compensation for the self-employed as directed by Prime Minister Chung. He said, “There are many things to point out as’the road that no one has been to’, so the Ministry of Information and Records needed a sufficient review.” He said, “What is the most rational institutionalization plan for self-employed persons, small business owners, etc. who are suffering from business restrictions? I will actively consult and gather wisdom.”
However, he emphasized, “I will inform you of the difficulties and limitations of the financial authorities in relation to the legislative institutionalization as they are.” It is interpreted as a means of opposing excessive financial expenditure in the course of discussion, although he will participate in the institutionalization work immediately.
Regarding the 4th disaster subsidy, Deputy Prime Minister Hong said, “It is necessary to make a comprehensive decision on the future quarantine situation, damage situation, economic situation, financial situation, etc.”. “Even if payment is unavoidable, selective payment by international financial institutions or research institutes. “This is more efficient and more desirable.”
Sejong= Youngha Son reporter [email protected]
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