The Budget Committee to Discuss 'Fiscal Rules' on the 27th… Ryu Seong-geol "First Agenda Review"

Ryu Seong-geol "Review of Agenda at the Economic and Fiscal Subcommittee of the National Finance Act"
Lee Jae-myung Mentions 35 Trillion Supplementary Budget
Ruling Party "Democratic Party Must Participate for Future Generations"

The National Assembly's Strategy and Finance Committee will discuss the National Finance Act to establish a 'Fiscal Rule' on the 27th.

Ryu Seong-geol, the ruling party's floor leader of the Strategy and Finance Committee and a member of the People Power Party, stated at the party's floor meeting held at the National Assembly on the 23rd, "We have decided to review the National Finance Act, including the fiscal rule, as the first agenda item."

The fiscal rule is a norm that manages fiscal soundness indicators so that they do not exceed a certain level. Although the partial amendment bill of the National Finance Act, which provides the legal basis for the fiscal rule, has already been submitted to the National Assembly, its passage has been delayed due to opposition from the opposition party.

[Image source=Yonhap News]

Earlier, Kim Ki-hyun, leader of the People Power Party, emphasized the introduction of the fiscal rule during the negotiation group leaders' speech at the National Assembly on the 20th, saying, "There is a need for a control device against fiscal addiction and irresponsible politics that just spends first and thinks later." Kim said, "During the five years of the Moon Jae-in administration, the government's annual budget increased by as much as 200 trillion won, and the national debt accumulated over 70 years since the founding of the country, before the Moon Jae-in administration, was about 660 trillion won," adding, "The short-lived effects brought by fiscal spending always tempt the political world, but we must overcome that temptation."

On the other hand, the opposition party is demanding a supplementary budget (Chugyeong), so discussions on the introduction of the fiscal rule are expected to face difficulties. Lee Jae-myung, leader of the Democratic Party of Korea, stated in the negotiation group leaders' speech on the 19th, "It is time for fiscal policy to play a role in economic recovery even if it means increasing national debt somewhat," and announced plans to push for a supplementary budget amounting to 35 trillion won. He also urged the government and ruling party to "understand the necessity of the supplementary budget and gather wisdom."

In response, Yoon Jae-ok, floor leader of the People Power Party, criticized at the party meeting held on the 20th, saying, "The reason the Democratic Party wants to increase the national debt further is simple. When cornered, they cling to what they are familiar with, resorting once again to populism to gain votes in next year's general election," calling it a "populist 'vote-buying supplementary budget'." Yoon added, "If the Democratic Party truly cares about future generations, they should actively cooperate in introducing the fiscal rule rather than pushing for a supplementary budget, thereby helping to strengthen fiscal soundness."

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