A Prospect on Government Expenditure for National Basic Livelihood Security Program

  • 2007-07-10
  • 414
 The welfare benefits for people who live below the poverty line in terms of mandatory expenditure has not only taken a considerable share of general fund, but also strengthened the rigidity of national finance. This research estimates the total amount of five welfare expenditures excluding Medicaid and self-support aid under the existing system. It is expected that the total amount of the five welfare expenditures will escalate from 3.4 trillion won in 2007, rising 10.8% per year, to 6.4 trillion won in 2012. This rapid rising is due to increase in the number of livelihood security recipients. This research suggests mandatory spending be estimated as a whole on the mid-term base for a sound operation of national budget. Moreover, it also proposes the current benefits policy be redesigned toward helping the subject of the policy escape from the status of benefits.