The ruling Democratic Party (DP) plans to swiftly draw up an extra budget that includes plans for both targeted and universal pandemic relief packages, the party's head of policy said Thursday, in spite of fiscal concerns raised by the finance ministry.

"The party and the government will draw up an extra budget at the earliest date through active consultations. We intend to include a firm amount of targeted support together with a universal handout program," Rep. Hong Ik-pyo, DP's head of policy, said during the party's policy meeting.

Hong argued that South Korea is capable of boosting its fiscal spending, explaining that the nation's debt-to-gross domestic product (GDP) ratio, a gauge of a nation's financial health, stood at 44 percent as of last year, lower than those of advanced nations such as the US, Germany and Japan.

"As saving the people is part of a nation's responsibility, if needed, the country should take up debt in place of the public and become a source of strength to the people," Hong said.

The statement from the DP came amid a recent policy clash between the party and the finance ministry over the direction of the country's fourth round of emergency coronavirus handouts.

Rep. Lee Nak-yon, head of the DP, said in a parliamentary speech Tuesday that the party plans to consult with the government on a two-pronged approach of providing selective and targeted support to those experiencing relatively more severe economic difficulties and also of issuing universal stimulus checks to everyone.

Finance Minister Hong Nam-ki, however, publicly expressed concerns specifically with Lee's idea, suggesting that it would be difficult for state coffers to support both handout programs in the current state.

Under a pandemic compensation bill being prepared by a ruling party lawmaker, the country may need at least 98.9 trillion won ($89.7 billion) if it seeks to compensate part of the business losses of smaller merchants.

The finance ministry is wary of quickly accumulating debt, as the national debt is expected to reach 956 trillion won this year, up 150.8 trillion won from last year.

Rep. Hong also stated that the DP plans to swiftly move forward in preparing steps to actualize a new welfare system vision proposed by Lee on Tuesday.

To this end, the party plans to launch a pan-national consultation body to review expanding the scope of recipients of state children's allowances, introducing a universal sickness allowance and expanding public senior care facilities. (Yonhap)