Analysis of the Second Installment of the Supplementary Budget Bill for 2022

Published on May 18, 2022
Published by Budget Analysis Coordination Division

   The government sent its “Second Installment of the Supplementary Budget Bill for 2022” to the National Assembly on May 13. The supplementary budget bill was submitted to expand compensation for small business owners affected by the spread of the COVID-19 pandemic, reinforce quarantine needs, and to support people's livelihoods, such as price stability, which is under increasing pressure due to the Russia-Ukraine conflict, rising oil prices, and lockdowns in major cities in China.
   The increase in the total expenditure of this supplementary budget bill is 59.4 trillion won, and it consists of a total of 5 areas: ① 26.3 trillion won in full loss compensation for small business owners; ② 6.1 trillion won in support for strengthening quarantine and transition to the general medical system in the future; ③ 3.1 trillion won in support for stabilizing people's livelihoods due to high prices and wildfires, etc. ④ 1.0 trillion won in reserve funds to be ready for the resurgence of the COVID-19 pandemic in the second half of 2022, etc., and, ⑤ 23.0 trillion won in mandatory local relocation due to excess tax revenue.
   The supplementary budget will be sourced from 53.3 trillion won in excess tax revenue, 8.1 trillion won in available financial resources such as net budget surplus and surplus funds from the fund, and 7.0 trillion won in expenditure restructuring. Of this, 9.0 trillion won will be used to repay government debt, which is expected to stand at 1,067.3 trillion won, down 8.4 trillion won from the first installment of the supplementary budget, reaching 49.6% of GDP.
   The National Assembly Budget Office has published the “Analysis of the Second Installment of the Supplementary Budget Bill for 2022” to support the National Assembly's in-depth review of the supplementary budget. The report consists of two chapters: In Chapter 1, fiscal aggregates such as requirements for supplementary budget planning, financial resources, fiscal soundness, national tax revenue adjustment, and major policies such as direct and indirect support for small business owners, reinforcement of quarantine measures, and support for price stability were analyzed. In Chapter 2, the urgency, necessity, and effectiveness of the programs, and the feasibility of executing the program budget by the end of the year for individual programs organized by each ministry, etc. were analyzed in depth.