Expansion of welfare budget to establish the social safety net

[punuri]

Expansion of welfare budget to establish the social safety net

The most representative program of the social safety net is the basic living costs security program. This program is for the destitute, and the social safety net also includes the unemployment insurance program. The government must support efforts such as vocational training and the employment security system by going one step further.

Specific gravity of welfare budget occupying 40~50% in Europe and 26% in Korea next year
We are working on providing medical care to those who cannot afford to pay for the premium. At the start of the Participatory Government’s administration, the welfare budget was short by 22%. This figure increased to 24% and expected to reach about 26% next year.

The welfare budget is still the most important aspect of the social safety net. The specific gravity occupied by national finance in the national economy is around 40%~50% in European countries. It is 58% in many countries such as Sweden. However, about 60% of national finance, which is 58% of the national economy, is occupied by welfare finance.

The financial ratio of Korea in the entire national economy is around 27%. 26% of that 27% is next year’s welfare finance. Therefore, it can be understood how weak Korea is in such field.

Although this is a pressing issue, the budget cannot be revised until next year. The structure of the budget is changing due to new mid- and long-term projects and the welfare budget is increasing at a rapid rate.

Need to strengthen the distributive policies•welfare spending continuously
The press asked me whether I would focus on growth or distribution when I assumed the presidency. Although I said, ‘The growth and distribution are not proceeded separately; therefore, they are always proceeded together’, my answer was heard by those who do not think much about distributive policies.

It is time for the government to take more interest in distributive policies. In regards to such, welfare spending has been quite high since the time of the People’s Government and has been maintained in the Participatory Government. Korea will not get worse as such similar to other countries with serious problems.

Going by numbers, we are currently proceeding at a medium pace in comparison to Europe. The U.S. is not in a better state and the economical gap between the rich and the poor in other countries is much more serious.

< Dec. 7, 2005. Special Program for the Local Broadcasting Day >