[2024 Budget] Yoon: "Previous Government's Reckless Spending... Rejecting Vote-Buying Budgets to Support the Vulnerable"

Criticizing the Moon Administration: "400 Trillion Won Debt Increase Due to Loose Fiscal Management"
"Claims to Loosen Budget Shift Burden to Future Generations"
Reiterates Commitment to Reject 'Vote-Buying Politics'... Strengthening Welfare for the Vulnerable

President Yoon Suk-yeol stated on the 29th, "We will reject election vote-buying budgets and use the saved resources to provide stronger support for the socially vulnerable." This declaration came as the Democratic Party of Korea called for supplementary budget allocations ahead of next year's general elections, signaling his determination not to engage in vote-buying politics with money. In particular, President Yoon criticized the previous Moon Jae-in administration's budget policy as "reckless fiscal management" and emphasized, "We will reject fiscal omnipotence."

On the same day, President Yoon presided over a Cabinet meeting at the Yongsan Presidential Office and stressed the government's budget management policy regarding the 2024 budget proposal to be submitted to the National Assembly ahead of the regular session next month. He said, "Some argue that the government should boldly loosen the budget ahead of the election, but this would shift the fiscal burden to future generations and exacerbate difficulties."

President Yoon Suk-yeol is presiding over a Cabinet meeting at the Presidential Office building in Yongsan, Seoul, on the 29th. Photo by Yonhap News

President Yoon's stance on maintaining tight and sound fiscal management has been announced several times since the government took office. This is based on analyses that the aftereffects of the previous administration's reckless fiscal management continue. The national debt, which was 660.2 trillion won in 2017, the first year of the Moon Jae-in administration, increased by 408.6 trillion won to 1,068.8 trillion won last year, which is the biggest cause. During the same period, the national debt-to-GDP ratio soared from 36% to a record high of 49.4%, making fiscal adjustment for the "future" inevitable, according to President Yoon's judgment.

On this day as well, President Yoon said, "Due to the previous administration's reckless fiscal management, the national debt increased by 400 trillion won and surpassed 1,000 trillion won for the first time last year." He evaluated, "Our government firmly rejects the 'fiscal omnipotence' that the previous administration was deeply immersed in and has clearly shifted to a sound fiscal policy." He particularly mentioned that major international credit rating agencies have positively evaluated South Korea's external creditworthiness, adding, "The reason is our sound fiscal management. To maintain external creditworthiness and stabilize prices, we must steadily continue the sound fiscal policy."

He also reiterated his determination to reject 'vote-buying politics.' President Yoon said, "Some argue that the government should boldly loosen the budget ahead of the election," but added, "However, expanding expenditures through issuing government bonds shifts the fiscal burden to future generations and will worsen difficulties in corporate activities and the overall livelihood economy due to a decline in national creditworthiness." By foregoing popularity and elections, he intends to properly allocate the national budget where it is needed. At the National Fiscal Strategy Meeting in June, he stated, "No political power likes unpopular austerity and sound fiscal management," and "If a political power truly loves the country and its people, it must undertake fiscal dieting for the nation even if it loses elections."

The government's decision to set the total expenditure for the 2024 budget (656.9 trillion won) with the lowest growth rate (2.8%) since 2005 aligns with this context. The aim is to minimize the burden on future generations by reducing overall spending and lowering the debt ratio through strong fiscal normalization. While cutting expenditures, the government also presented a blueprint to shift the economic structure to be market-centered and led by the private sector. President Yoon said, "To this end, we will boldly eliminate killer regulations that hinder private investment and reorganize the financial system," adding, "Through the carefully prepared 2024 budget proposal, we will do our best to manage finances prudently and take good care of people's livelihoods."

He also requested the National Assembly's cooperation. President Yoon expressed concern, saying, "About 200 bills submitted to take care of the economy, people's livelihoods, and prepare for future growth are not passing the National Assembly," and warned, "If re-legislation takes a long time, the damage will ultimately fall directly on the people." He then urged, "I hope the Cabinet members will work with extraordinary determination and full effort to ensure that key bills addressing our people's livelihoods and future growth are prioritized for discussion during this regular session of the National Assembly."

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