The Public Administration and Security Committee of the National Assembly on the 1st increased the government's proposed supplementary budget for its jurisdictions by 2.9 trillion won and handled it by bipartisan agreement. The budget for the consumption coupon support program was set so that the central government would bear the full cost.
The committee held a plenary session that day and resolved to increase the supplementary budget for the Ministry of the Interior and Safety, the National Fire Agency and other related ministries by 2,914,355,000,000 won from the government's original proposal.
Specifically, ▲ 2.9 trillion won for people's livelihood recovery consumption coupons ▲ 5,655,000,000 won for public emergency job support for residents of areas damaged by wildfires ▲ 3,115,500,000 won for creating a national trauma healing center for victims of state violence, among others. The National Fire Agency budget was approved as proposed.
It also deleted the clause in the government proposal that had the central government bear 10.3 trillion won and local governments bear 2.9 trillion won of the consumption coupon issuance budget. The central government will bear the entire 13.2 trillion won issuance budget for the consumption coupons.
Wi Seong-gon, chairperson of the committee's budget and settlement of account review subcommittee, said in the supplementary budget review report, "Because the regional love gift certificate issuance support project can cause local fiscal burdens, we attached a total of 18 supplementary opinions, including actively seeking support measures so local governments do not have difficulty securing funds and having the Ministry of the Interior and Safety promptly allocate national funds for the people's livelihood recovery consumption coupons to local governments."
Although the supplementary budget was handled by bipartisan agreement, the opposition again raised doubts about the effectiveness of the consumption coupon support.
Park Soo-min, a People Power Party lawmaker, said, "What we are doing is not agreement-based approval but procedural cooperation," adding, "Even if 10 trillion won of national debt is mobilized to distribute consumption coupons, the consumption stimulation effect is short-lived. The support effect aimed at helping vulnerable small business owners and self-employed people is greatly reduced by consumer choice. Therefore, there is little economic benefit to mobilizing government debt."
Lee Seong-kwon, a lawmaker from the same party, also said, "The consumption stimulation effect may end in a short period," adding, "Sufficient alternatives to overcome the side effects of this have not been reflected, and the government must continuously consider this point."