LARGEST EXTRA BUDGET BILL IN HISTORY

[Anchor Lead]

The latest extra budget approved by the Cabinet amounts to 59 trillion won including 36 trillion in general spending. If the bill is finalized as is, it will go down as the largest supplementary budget in history.

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Neighborhood shoe repair shops also faced the fallout of the pandemic. With fewer people venturing out of their homes, not many had the need to clean or mend their shoes.

[Soundbite] Han Yong-heum(Cobbler) : "Sales dropped to half one year into the pandemic. I had no other way but to cancel my insurance policy and so on."

The new government’s proposed extra budget will pay out a minimum 6 million won to small business owners who suffered a decline in sales. The amount of aid goes up to a maximum 10 million won depending on the size of business and scale of loss. Some 3.7 million businesses are expected to receive assistance. This time around, 50 types of additional businesses have been newly added, such as travel agencies.

[Soundbite] Gwon Byeong-gwan(Woori Tour Cooperative) : "I’m grateful for the relief aid. I additionally hope that loans can also be paid off over a longer period of time."

The budget also includes 3 trillion won in livelihood stabilization funds for the general public struggling with inflation and an aid package for after-school hour instructors. Also included on the list are corporate-owned taxi drivers and people employed in arts and culture sector who were previously left out from compensation. This extra budget is an all-time high figure but it will not burden national debt. This is because the budget has reflected in advance surplus tax revenue to be collected this year. The government projects over 50 trillion won in additional corporate and income tax earnings this year.

[Soundbite] Choo Kyung-ho(Finance Minister) : "Impact on macro economy such as interest rates and inflation will be minimal. The national debt ratio will also improve to 49.6%."

However controversy remains with such a huge discrepancy in tax revenue with just five months into the new year and the fact that a future tax source served as the basis for drawing up a record budget.