Ruling and Opposition Parties Engage in Tense Debate Over Additional Budget Increase

[Asia Economy Reporter Oh Ju-yeon] The ruling and opposition parties, having officially begun reviewing the 2nd supplementary budget (추경) bill, are engaged in a tense standoff over the net increase in the budget size.

On the 20th, the National Assembly's Special Committee on Budget and Accounts held a supplementary budget adjustment subcommittee meeting for two days starting today to begin detailed review. At the subcommittee session, which adjourned after three and a half hours, both parties agreed on the need to focus on supporting small business owners affected by strengthened COVID-19 quarantine measures, but showed differing positions on the net increase of the supplementary budget.

Kim Seong-won, the People Power Party's floor leader on the Budget Committee, said, "We will make sure to provide practical support to self-employed small business owners who are struggling, as well as those engaged in quarantine efforts." Democratic Party floor leader Maeng Seong-gyu also said, "We will work harder to give hope to the people," adding, "At yesterday's Industry Committee, we agreed that the Budget Committee should discuss in depth to ensure broad and substantial support for small business owners."

The ruling and opposition parties have agreed to expand the scale of loss compensation support for small business owners. On the morning of the 20th, Park Wan-joo, the Policy Committee Chair, said at a briefing, "The payment amount for the Hope Recovery Fund was decided by bipartisan agreement to increase from the 9 million won cap to a maximum of 30 million won." The day before, the Democratic Party and the government also agreed at a high-level party-government meeting to expand the scale of loss compensation support for small business owners and to raise the Hope Recovery Fund support unit to the highest level among all past disaster relief funds.

Accordingly, while the ruling party expects an increase in the supplementary budget, the People Power Party announced four principles for the supplementary budget on the same day?maintaining the 2 trillion won expenditure scale, no additional issuance of government bonds, prohibition of increasing revenue budget amounts, and adjusting by reducing unnecessary projects within the existing budget if resources are insufficient?showing a firm stance against increasing the supplementary budget. They explained that prioritizing securing additional resources by cutting unnecessary budgets is essential.

On the day, both parties reviewed projects under the Ministry of Land, Infrastructure and Transport, Ministry of Agriculture, Food and Rural Affairs, and Ministry of Education, but most agenda items were deferred. Among them, only a 13 billion won reduction was decided for the agricultural and livestock product consumption coupon project.

The Budget Committee will reconvene the subcommittee at 10 a.m. on the 21st to continue reviewing the budget bill.

First, projects under the Ministry of Science and ICT, Ministry of Employment and Labor, Ministry of Health and Welfare, Korea Disease Control and Prevention Agency, Ministry of Culture, Sports and Tourism, Ministry of Trade, Industry and Energy, Ministry of SMEs and Startups, and Financial Services Commission will be reviewed, followed by the Ministry of the Interior and Safety and Ministry of Economy and Finance, which will handle the expansion of nationwide disaster relief funds and support for small business owners, scheduled to be reviewed last.

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