SEOUL (Reuters) – South Korea has announced on Thursday plans to reimburse small businesses and the self-employed for their losses from COVID restrictions.

According to the finance ministry, this is the first supplementary budget approved by President Yoon Sukyeol since his election. It amounts to 59.4 trillion won (or $46.1 billion). However, 23.0 trillion won will go to each province according to laws.

According to the ministry, it said that no bonds would be issued in order to fund its budget. This is because this year’s tax revenue projection has been revised sharply by 53.3 trillion won. Another 7.0 trillion won would have to change existing spending plans.

According to the agreement, 26.3 trillion won will be paid to approximately 3.7million small- and medium-sized businesses. A further 6.1 trillion won will be used for strengthening medical capacity.

The rest will be used to strengthen welfare programmes.

Separately, it said that 9 trillion won would be spent on repaying bonds government before they mature, cutting back this year’s planned issuance, or both.

Yoon promised 50 trillion won during his campaign. However, the current President Moon Jaein’s government has introduced an additional budget of 16.9 trillion won before the May 9 elections.

This year, the supplementary budget will increase total government spending by 52.4 trillion won. It would reach a record high of 676.7 trillion won. However, this increase is smaller than that due to an increase in tax revenue from a debt reduction program.

The ministry stated that despite the increase in spending, government debt this year would decrease to 49.6% from the 50.1% previously.

Friday is the due date for submission of the supplementary budget bill to parliament.

($1 = 1,288.3100 won)