Deputy Prime Minister Choo Kyung-ho: "Forced Budget Non-Use? Not Considered at All"

National Assembly Planning and Finance Committee Plenary Meeting
"Reviewing Global Surplus Funds and All Fund Resources"

Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho is responding to lawmakers' questions at the plenary meeting of the Planning and Finance Committee held at the National Assembly in Yeouido, Seoul, on the morning of the 22nd.
[Photo by Yonhap News]

Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho emphasized on the 22nd, "We are not currently considering any forced budget non-utilization, nor do we have such intentions."

Deputy Prime Minister Choo made this remark during the plenary session of the National Assembly's Planning and Finance Committee when Jin Sun-mi, a member of the Democratic Party of Korea, pointed out concerns about the forced non-utilization of the budget in relation to the recent tax revenue shortfall. Non-utilized budget refers to expenditures that are either carried over to the next year or not used at all. Currently, tax revenue is expected to fall short by nearly 30 trillion won, and given the current administration's emphasis on sound fiscal management, there is speculation that instead of issuing government bonds as a countermeasure, they might opt for budget non-utilization.

Representative Jin Sun-mi stated, "The decrease in tax revenue has been confirmed and is expected to worsen further," adding, "Issuing government bonds is difficult due to the deterioration of fiscal soundness, and I have been informed that there is no plan for a revised estimate reflecting the economic situation, so I think forced non-utilization measures might become inevitable." She also claimed, "During the Lee Myung-bak and Park Geun-hye administrations, forced non-utilization occurred for three consecutive years when tax revenue decreased, and it was related to the youth employment budget."

From 2013 to 2014, the Ministry of Economy and Finance instructed each ministry to prepare expenditure reduction plans focusing on lower-priority projects due to tax revenue shortages. In 2013, 18.1 trillion won, and in 2014, 17.5 trillion won were increased as non-utilized budgets. Considering that the tax revenue shortfall at that time was between 8 to 10 trillion won, there is also a view that this year's non-utilization could be the largest ever.

In response, Deputy Prime Minister Choo rebutted, "Forced non-utilization will not occur artificially or preemptively," adding, "Even with diligent fiscal execution, a certain portion of non-utilized funds always emerges, and we plan to respond by thoroughly managing the execution process to enhance efficiency." He also mentioned, "We will ensure that budgets for youth, welfare expenditures, and livelihood sectors are supported without disruption."

Additionally, Deputy Prime Minister Choo stated, "We are reviewing the global surplus from last year's settlement and all fund resources," and added, "Within the legally defined scope, we will utilize available resources that we can flexibly manage."

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