Self-employed person angry at prolonged distance… “Historical Disaster Subsidies” vs. “Narat debt 1,000 trillion”

[세종=이데일리 이명철 기자] As the government decides to extend the current social distancing phase, it is a sign that the goal of the economic downturn at the beginning of the year will deepen. Political circles are demanding that the 4th disaster subsidies and loss compensation system be hurried to recover from damage to the people. As the February National Assembly schedule begins, it is expected to speed up the formation of additional budget (additional budget). However, concerns over deteriorating fiscal soundness, such as a surge in national debt, are likely to cause debate over the target and scale of support.

A notice about the ban on meetings of more than 5 people is posted at a restaurant in Seoul. (Photo = Yonhap News)

Discussing disaster subsidies, etc. at the temporary National Assembly in February

According to the National Assembly and the government on the 31st, the Democratic Party is discussing the details of the 4th disaster support payment before April.

Democratic Party Representative Lee Nak-yeon said at the Supreme Council on the 29th, “The party and the government will prepare additional support measures as soon as possible to alleviate the pain of the common people such as merchants due to the prolonged corona.”

The Democratic Party initially reviewed the introduction of a loss compensation system to compensate for the loss of business of self-employed persons, but decided to promote the disaster support fund first, considering the time it takes to pay. In particular, as the decision to extend high-intensity social distancing, there is an atmosphere that it is necessary to hurry to support damage recovery.

The scale of the 4th disaster subsidy is being discussed at a level that exceeds the 1st (14.200 trillion won) that was paid to all the people. It is known that a plan to provide thicker support to the victims is being investigated, excluding public officials and general office workers who are receiving a stable salary.

Loss compensation reflects the phrase “when the state restricts business in special circumstances such as Corona 19, it can be compensated”, and details are being reviewed on a method of entrusting them to the enforcement ordinance and enforcement regulations. In order to quickly determine the target and scale of support, it is highly likely that the loss will be applied as a’special support’ rather than’compensation’.

When evaluating the loss of self-employed people, it is more likely that sales are based on gross profit excluding cost of sales or operating profit excluding sales and management expenses. Gross profit or loss of operating profit caused by government measures is a method of differentially supporting 30%, 50%, and 70% for each prohibition or restriction.

The Win-Win Cooperation Solidarity Fund, which is being promoted as a way to resolve the polarization, is being raised through government funding, public fund recovery, government contributions from the Bank of Korea, virtual asset taxation, and corporate/individual contributions and donations.

[이데일리 이동훈 기자]

“Financial is not infinite… The burden of future generations”

As for the method of preparing at least 15 trillion won or more of financial resources for the immediate disaster support payment, it is practically effective to organize additional budgets through issuance of deficit government bonds. This is because there is not enough financial capacity as it already spent a budget of 9 trillion won to pay the third disaster support fund, such as support funds for small businesses, earlier this year.

In order to execute a budget of 558 trillion won this year, the government has already set up a plan to issue government bonds with a deficit of around 100 trillion won. As of the end of this year, national debt will soar to 956 trillion won, an increase of 106 trillion won compared to the previous year. In addition, if the’additional debt in debt’ is implemented from the beginning of the year, the national debt will rise to a level close to 1,000 trillion won.

The government is cautious, saying, considering the rapid increase in national debt, limited resources should be used in the right place. An Il-hwan, the second vice minister of the Ministry of Strategy and Finance, said at the financial management review meeting on January 28, “Funds are never infinite, given the burden of the people and future generations.” “It is effective to maintain the sustainability of budget planning and execution. “We need to come up with a strategy and plan for financial management.”

It is pointed out that a disaster subsidy, which has been expanded to be paid while the financial resources are limited, may lead to a deterioration of financial capacity rather than the effect of revitalizing the economy.

Professor Sung Tae-yoon of the Yonsei University Department of Economics said, “As it is difficult to continuously support the people due to financial problems, it is important to support the victims centered on the victims.” “Consumption activation effect is not great. “It was diagnosed.