ED Regrets over extra budget

Giving due compensation to small merchants is essential

After many twists and turns, the National Assembly passed a 34.9 trillion won ($30.3 billion) supplementary budget bill Saturday. The extra budget, the second of its kind this year, comes as the country is struggling with Level 4 social distancing guidelines ― the highest ― amid a fourth wave of the COVID-19 pandemic.

All individuals here except for the top 12-percent income bracket will receive 250,000 won ($216) in disaster relief funds each under the supplementary budget plan, to be financed by the country's excess tax revenue. There has been much controversy over the validity of providing the relief payments, especially to the rich.

But what's most disheartening is that the latest extra budget did not allocate enough resources to small merchants, such as the operators of restaurants or gyms. They have been bearing the brunt of the fallout from the government-ordered business restrictions. Our coronavirus control measures would have failed in a flash unless these small businesses complied with the social distancing guidelines. This is why due compensation should be given to them.

The legislature had promised to raise the so-called “hope revival fund” budget for the self-employed to 6.18 trillion won ($5.36 billion) from the government-proposed 3.25 trillion won ($2.81 billion). But the funding was increased only by 950 billion won to 4.2 trillion won ($3.64 billion) while passing through an Assembly plenary session, as a result of tough opposition from the Ministry of Economy and Finance.

The government says that up to 20 million won ($17,349) each will be provided to 1.78 million small merchants. But that maximum handout will be available to only a few entertainment facilities, such as karaoke bars, that have been ordered to close their business for a prolonged period. To most small merchants, this amount is a mere pittance. It's essential to fairly compensate them for their losses to make our pandemic management efforts successful. The economy could seriously falter if the country's self-employed sector, which accounts for nearly 25 percent of employment, crumbles. Policymakers and lawmakers should act resolutely to map out fundamental measures to help all of those hit hard by the pandemic.