DETAILS OF GOVT'S BUDGET PROPOSAL

입력 2022.08.31 (15:03) 수정 2022.08.31 (16:45)

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[Anchor Lead]

Yesterday we reported on the government's belt tightening budget proposal for next year set at 639 trillion won. A closer look into the 2023 budget shows that smaller funds are allocated to areas involving direct government aid such as jobs for senior citizens. The aim is to step up the private sector's role but some are concerned about the effect of scaled back state finances in areas such as welfare.

[Pkg]

Seniors in their 70s are cleaning up a park. They work for an average of 30 hours a month and get paid some 270-thousand won. The government is set to slash more than 60-thousand of these public sector jobs for the elderly where wages are paid by the state. The plan is to increase private sector jobs but eventually, 23-thousand jobs for seniors will be lost. Jobs-related budget has been cut by 2 trillion won next year which includes subsidies for companies that hire young people. The government's aim is to encourage private sector-led growth.

[Soundbite] Kim Wan-sup(Finance Ministry budget director) : "Private sector activities are better than direct gov’t engagement. When the private sector chooses investment areas, the gov’t can then help those businesses."

Meanwhile, investments in future growth sectors have been sharply increased. An additional one trillion won will go toward research and development in semiconductors and AI. An extra 700 billion won will be invested in carbon neutrality efforts such as reducing greenhouse gas emissions. As the new budget plan focuses on efficient spending, increase in funds for public health, welfare and employment are cut by half compared to this year. However the government plans to strengthen tailored welfare policies that serve the socially vulnerable. This includes raising allowance payments to people with disabilities. But over 5 trillion won has also been cut back in government spending on public rental homes, which were seen as an alternative to flood-prone semi-basement units.

[Soundbite] Lee Wang-jae(Fiscal Reform Institute) : "If efforts on fiscal soundness and private sector-led growth head in the wrong direction, that can squeeze welfare, putting vulnerable people at risk."

More than half of the budget for the construction of a new high speed rail in the greater metro area has also been slashed, raising concerns about whether the project could even break ground. Another controversy surrounds the absence of any state aid set aside for fostering regional currencies. The government will submit its budget proposal to parliament on Friday.

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  • DETAILS OF GOVT'S BUDGET PROPOSAL
    • 입력 2022-08-31 15:03:35
    • 수정2022-08-31 16:45:06
    News Today
[Anchor Lead]

Yesterday we reported on the government's belt tightening budget proposal for next year set at 639 trillion won. A closer look into the 2023 budget shows that smaller funds are allocated to areas involving direct government aid such as jobs for senior citizens. The aim is to step up the private sector's role but some are concerned about the effect of scaled back state finances in areas such as welfare.

[Pkg]

Seniors in their 70s are cleaning up a park. They work for an average of 30 hours a month and get paid some 270-thousand won. The government is set to slash more than 60-thousand of these public sector jobs for the elderly where wages are paid by the state. The plan is to increase private sector jobs but eventually, 23-thousand jobs for seniors will be lost. Jobs-related budget has been cut by 2 trillion won next year which includes subsidies for companies that hire young people. The government's aim is to encourage private sector-led growth.

[Soundbite] Kim Wan-sup(Finance Ministry budget director) : "Private sector activities are better than direct gov’t engagement. When the private sector chooses investment areas, the gov’t can then help those businesses."

Meanwhile, investments in future growth sectors have been sharply increased. An additional one trillion won will go toward research and development in semiconductors and AI. An extra 700 billion won will be invested in carbon neutrality efforts such as reducing greenhouse gas emissions. As the new budget plan focuses on efficient spending, increase in funds for public health, welfare and employment are cut by half compared to this year. However the government plans to strengthen tailored welfare policies that serve the socially vulnerable. This includes raising allowance payments to people with disabilities. But over 5 trillion won has also been cut back in government spending on public rental homes, which were seen as an alternative to flood-prone semi-basement units.

[Soundbite] Lee Wang-jae(Fiscal Reform Institute) : "If efforts on fiscal soundness and private sector-led growth head in the wrong direction, that can squeeze welfare, putting vulnerable people at risk."

More than half of the budget for the construction of a new high speed rail in the greater metro area has also been slashed, raising concerns about whether the project could even break ground. Another controversy surrounds the absence of any state aid set aside for fostering regional currencies. The government will submit its budget proposal to parliament on Friday.

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