Looming danger of debt : vimarsana.com

Looming danger of debt


Looming danger of debt
Prepare for exit strategy to ensure fiscal health
The country's national debt has increased to its highest level, driven by the unprecedented public health crisis. The Ministry of Economy and Finance said Tuesday that the national debt, comprised of bond issuances and borrowing by central and local governments, hit a record 846.9 trillion won ($750.5 billion) as of the end of last year, up 17.1 percent from 2019.
The double-digit increase was inevitable for the country to minimize the economic fallout from the COVID-19 pandemic. The Moon Jae-in administration executed four rounds of supplementary budgets totaling 67 trillion won to offer emergency relief to individuals and businesses hit by the worldwide coronavirus outbreak. It had to increase the issuance of treasury bonds to fund the aid. Large-scale economic stimulus packages also raised the debt level.

Related Keywords

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