Integrated Union: "4th Supplementary Budget Must Be Decided Carefully Considering Economic Uncertainty"

Arguing that the 4th supplementary budget, which will impose new fiscal burdens, should be approached cautiously to reserve national fiscal strength amid global economic uncertainties

[Asia Economy Reporter Park Jong-il] The National Integrated Public Officials Union (Chairman Lee Chung-jae) issued a statement on the 11th, asserting that "the 4th supplementary budget should be decided cautiously, considering the economic uncertainties caused by COVID-19."

The union stated, "Discussions on the 4th supplementary budget are in full swing, mainly within the political sphere. It is reported that the political circles believe the 4th supplementary budget is necessary for flood damage recovery. The ruling party's claim on the need for a new supplementary budget seems to face little opposition from the opposition parties. In response, the Ministry of Economy and Finance, the responsible department, holds a passive stance. Since funds have already been secured through the 2nd and 3rd supplementary budgets, they do not appear to be actively supporting the necessity of a 4th supplementary budget. They are concerned about the fiscal burden caused by the supplementary budget amid significant fiscal expenditures due to COVID-19," it said.

It also emphasized, "We believe that providing emergency recovery support for the devastating damage suffered by the people due to the flood is absolutely necessary. This should be done properly and swiftly according to procedures. However, we think that the review of the 4th supplementary budget, which is proceeding mainly within the political circles, must be very cautious."

First, the union pointed out that the 4th supplementary budget is an extremely unusual situation. The union said, "We have already made considerable fiscal expenditures this year to cope with the health crisis caused by COVID-19. It is also known that many parts of the budget prepared in the 2nd and 3rd supplementary budgets have not yet been properly spent."

In particular, "It should be noted that the global economic uncertainty caused by COVID-19 has not yet been resolved. According to medical experts, overcoming COVID-19 within this year is very difficult. The international economic crisis phase resulting from this is still hard to predict when it will be resolved," it added.

The union stated, "Considering such global economic uncertainties, the 4th supplementary budget, which would impose a new fiscal burden, should be approached cautiously, even in terms of reserving the strength of national finances. The funds for flood recovery support should make maximum use of the budget secured through the 2nd and 3rd supplementary budgets. Furthermore, with the discussion of next year's budget approaching, if additional funds are needed, reflecting them in the 2021 budget could be another option."

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