Gov't agrees to include nationwide cash payout in upcoming budget

The government and the Democratic Party (DP) agreed Wednesday to include a nationwide cash payout in the upcoming extra budget, shifting from a targeted aid approach to universal support for all citizens.

Jin Sung-joon, head of the Democratic Party's policy committee, walks to attend a meeting on the supplementary budget bill with the presidential office, government and ruling party at the National Assembly in western Seoul on June 18. [YONHAP]

The government and the Democratic Party (DP) agreed Wednesday to include a nationwide cash payout in the upcoming extra budget, shifting from a targeted aid approach to universal support for all citizens.

Jin Sung-joon, head of the DP's policy committee, announced the agreement after a party-government policy consultation meeting held at the National Assembly in western Seoul on Wednesday morning.

“The party has consistently insisted that the livelihood recovery payment should be provided universally, and the government accepted this approach,” Jin said. "The agreement also reflects the president’s commitment and the government’s stance to offer additional support for vulnerable groups, including basic livelihood recipients and those in the low-income bracket.

“There is a clear need for special attention to areas facing population decline, and for prioritizing residents in noncapital regions over those in the Seoul metropolitan area. We requested additional support on this front, and the government agreed to accept it.”

On the scale of the extra budget, Jin said the party previously called for a 35 trillion won ($25.2 billion) package.

With the government having already approved a 13.8 trillion won first extra budget last month, the second round is expected to exceed 20 trillion won.

The photo shows an alleyway shopping district in Seoul on June 16. [YONHAP]

Jin also welcomed the government’s decision to formally revise its revenue outlook through a “revenue adjustment” process.

“Previous administrations avoided taking responsibility for revenue shortfalls by redirecting funds or freezing budget spending, but this government has acknowledged the issue and opted to revise its revenue projections,” he said.

He explained that the revised budget includes funding for the livelihood recovery payments and a consumer coupon program, along with additional funds for regional gift certificates.

“The party has strongly insisted that discount rates for these gift certificates should be higher in rural areas, and the government agreed to increase state support in line with that,” he said. “The debt accumulated since the Covid-19 pandemic has become overwhelming. We see an urgent need to restructure it, and the revised budget includes funding for that.

"Emergency welfare support and job-seeking subsidies for low-income households are also included in the plan."

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff. BY HYEON YE-SEUL [paik.jihwan@joongang.co.kr]