Hong Nam-ki Urges "Adherence to Fiscal Standards and Principles" Ahead of Next Year's Budget Review

"Excess Tax Revenue to Be Used for 'Tailored Measures for Non-Compensated Loss Sectors'" Emphasized

Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, is presiding over an expanded executive meeting held at the Government Sejong Complex on the afternoon of the 15th. November 15, 2021 [Provided by the Ministry of Economy and Finance. Resale and DB prohibited] [Image source=Yonhap News]

[Sejong=Asia Economy Reporter Son Seon-hee] Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, urged on the 15th, ahead of next year's budget review, to "adhere to fiscal standards and principles as much as possible." This was a call for thorough preparation emphasizing 'fiscal principles' amid the ruling party joining in support of Lee Jae-myung, the Democratic Party presidential candidate's claim for 'universal disaster relief payments.'

In particular, while the ruling party points to this year's tax revenue exceeding expectations as the basis for universal disaster relief payments, Deputy Prime Minister Hong requested, "Please accelerate the preparation of tailored measures for non-compensable sectors using this year's excess tax revenue." This statement is interpreted as emphasizing the intention to support selectively those groups severely affected by COVID-19 rather than providing universal support funds.

Deputy Prime Minister Hong chaired an expanded executive meeting at the Government Complex Sejong in the afternoon and urged, "From this week, please respond more meticulously and thoroughly to the budget subcommittee, tax subcommittee, and bill subcommittee sessions held in the National Assembly," according to the Ministry of Economy and Finance. He also stressed, "While responding smoothly to the enactment and revision of laws including tax laws, make sure to complete the enactment and revision of the Service Industry Development Basic Act and the National Finance Act (introduction of fiscal rules)."

The meeting was held via video conference between Seoul and Sejong, attended by Deputy Minister Ahn Do-geol, and officials at the director and bureau chief levels, presided over by Deputy Prime Minister Hong.

Deputy Prime Minister Hong requested, "Focusing on the Deputy Minister's office, please concentrate on three things: daily monitoring and response to stabilize living prices including the supply of urea solution in November and December; firmly establishing the stabilization and downward trend of the real estate market as an opportunity to stabilize real estate buying sentiment; and accelerating the formulation of the 2022 Economic Policy Direction (EPD) aiming for its announcement in late December."

Furthermore, with the presidential election scheduled for March next year entering a full-fledged election phase, Deputy Prime Minister Hong quoted the proverb "Do not adjust your gat strings under the plum tree," emphasizing, "The political neutrality of public officials is being particularly stressed recently," and urged, "All staff should be especially careful to avoid even small words or actions that could cause misunderstandings."

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