Claim of "100 Trillion Won Spent on Economic Stimulus"... Finance Vice Minister Retorts, "Who Will Repay and How?"

[Image source=Yonhap News]

[Sejong=Asia Economy Reporter Kim Hyunjung] Ahn Il-hwan, the 2nd Vice Minister of the Ministry of Economy and Finance, rebutted the claim that about 100 trillion won should be spent in fiscal expenditure this year to stimulate the economy, saying, "Who will pay it back and how?"

On the 18th, at the National Assembly's Planning and Finance Committee, Vice Minister Ahn responded to Yong Hye-in, a Basic Income Party lawmaker who demanded active fiscal spending from the Ministry of Economy and Finance, saying, "While spending 100 trillion won has various useful aspects, we need to think about how to repay the 100 trillion won," and added, "Who will pay it back and how?"

Earlier, Lawmaker Yong stated, "If 400,000 won per citizen is paid quarterly, it amounts to 80 trillion won, and if 20 trillion won is spent on loss compensation for small business owners and self-employed individuals, 100 trillion won can be spent," and demanded, "In a situation where there is potential to secure fiscal resources, the Ministry of Economy and Finance should not take a passive stance and restrict fiscal spending, but rather open discussions to allow sufficient fiscal expenditure throughout this year."

Vice Minister Ahn responded, "I hope we can revisit the discussion on the part where national debt is talked about too easily without considering the cost burden," emphasizing, "Because we have actively managed fiscal policy in the past, soundness has been accumulated enough to be used in times of crisis, but as the recent crisis has prolonged, the speed of fiscal deficit increase has become very rapid. We must also consider the risks."

He continued, "As government bond yields rise, we must consider the ripple effects on the economy and national credit rating," and stressed, "If you say that a 100 trillion won deficit can be easily made, it places a tremendous burden on future generations."

This content was produced with the assistance of AI translation services.