The budget for 2023 was finalized at 638.7 trillion won and passed the National Assembly. This is a decrease of regarding 300 billion won compared to the original government plan, and next year’s national debt will increase by 65 trillion won from this year to 1134.4 trillion won.
According to the National Assembly and the Ministry of Strategy and Finance on the 24th, the National Assembly confirmed the next year’s budget bill containing these details at the plenary session held on the same day.
The government initially submitted a “2023 budget bill” to the National Assembly with a total expenditure of 639 trillion won, but next year’s budget was confirmed at 638.7 trillion won, a decrease of 300 billion won.
The budget bill was reduced by 4.6 trillion won during the National Assembly review process, but the total expenditure decreased only by 300 billion won as the opposition Democratic Party of Korea requested an increase of 3.9 trillion won.
As a result, the change in the size of total spending turned into a net decrease in three years following the 2020 budget. Previously, the net increase in the National Assembly increased from a 1.2 trillion won cut in 2020 to 2.2 trillion won in 2021 and 3.2 trillion won in 2022.
With a net decrease in total spending and a decrease in foreign exchange equalization fund bond issuance, next year’s national debt will drop by 400 billion won from 1134.8 trillion won to 1134.4 trillion won.
The managed fiscal balance and consolidated fiscal balance remained at the level of the government plan with deficits of 58.2 trillion won and 13.1 trillion won, respectively. The national debt decreased by 400 billion won from 1134.8 trillion won to 1134.4 trillion won, accounting for 49.8% of GDP.
Looking at the major projects increased by the National Assembly, 1.7 trillion won was increased to ease the livelihood burden of the working class due to high prices and high interest rates, and to provide customized support for the vulnerable, such as the elderly, the disabled, and small business owners. First of all, the local love gift certificate budget of 352.5 billion won was newly included.
The supply of public jeonse rental housing, which can be quickly supplied to the vulnerable, increased from 30,000 to 37,000, and an additional budget of 663 billion won was allocated, and the scope of loan exchange support was expanded to reduce the interest burden of the homeless common people. The amount of secondary compensation for loan supply of trillion won also increased.
To alleviate the transportation cost burden of the working class who frequently use public transportation, the number of mileage plus support for affordable transportation cards has been expanded from 44 times to 60 times, and the related budget has increased. It increased from 15,000 won to 195,000 won.
Agricultural food vouchers (KRW 40,000 per month per person) supported for households with less than 50% of the median income. The target of support was expanded from 28,000 households to 48,000 households, and a specialized nursing hospital for the treatment of patients with severe and rare diseases such as Lou Gehrig’s disease. The budget for supporting the construction pilot project was newly included.
To prepare for the possibility of deteriorating employment conditions due to future economic slowdown, it was decided to increase the number of public senior jobs by an additional 61,000 and maintain the total number of senior jobs from 822,000 to 883,000.
In addition, considering higher-than-expected inflation, the unit price of cooling/heating and grain cost support per senior citizen will be raised from 2.15 million won to 2.5 million won per year, and 500 additional labor support workers will be assigned to support incidental work activities for the severely disabled.
28 billion won was newly allocated to supply temporary special guarantees of 140 billion won to those with the lowest credit ratings who have difficulty obtaining loans from institutional banks, and the limit of emergency relief funds for the welfare underprivileged voluntarily discovered by local residents increased from 500,000 won to 600,000 won per household. has been raised
700 billion won was increased to prepare for the future and strengthen security and safety investments. 1.7 trillion won (education tax 1.5 trillion won, general account 200 billion won) was increased for the establishment of a new ‘higher and lifelong education support special account’ to utilize some of the local education financial grants to nurture future talents and expand investment in local universities.
In addition, an additional 700 billion won was reinforced for future preparation and security and safety investment, including 100 billion won for semiconductor industry investment, 100 billion won for power reinforcement related to the 3-axis system, and 21.3 billion won for safety investment related to the Itaewon disaster.
In addition, 1.5 trillion won was increased for projects to revitalize the local economy, such as support for restoration costs for typhoon-stricken areas (100 billion won), support for rural areas (100 billion won), and response to other local pending issues.
The project feasibility was high, such as the demand for the ‘East Gwangju-Gwangsan’ section of the highway and the ‘Daesan-Dangjin’ section of the railroad, etc. The design start fee and start-up cost for the new highway and railway lines that passed the preliminary feasibility study were additionally reflected.
The government plans to submit and vote on the 2023 budget bill at the cabinet meeting on the 27th, agreeing on the increase in the National Assembly, budget announcement, and budget allocation plan.
In addition, it plans to allocate 75% of the total expenditure budget in the first half of the year, and quickly prepare and promote advance procedures so that execution can begin in time for the start of the fiscal year on January 1 next year.
