President Lee Jae-myung said on the 29th regarding the government's budget plan for next year, "We cannot make the mistake of leaving the fields fallow just because there are not enough seeds to sow," adding, "It is common sense and the natural way to prepare for farming by borrowing seeds to sow them." This implies that the issuance of government bonds is also inevitable to realize active fiscal policies. The scale of deficit government bonds that the government has announced to cover increased expenditure is 110 trillion won.
On that day, President Lee presided over a temporary State Council meeting and noted, "Currently, our economy is facing two challenges: an industrial economy innovation led by new technologies and the improvement of an export-dependent economy vulnerable to external shocks," adding that "the budget plan for next year, which will be approved at today's State Council meeting, is designed to simultaneously address these two challenges and serve as a catalyst for recovery and growth through a major economic innovation."
He further remarked, "Now is a time when an active role for fiscal policies is more necessary than ever," urging, "The government must closely communicate with the National Assembly and ensure seamless processing of the budget. I request the National Assembly's active cooperation for a new leap forward for our economy."
The budget plan for next year includes a total of 35.3 trillion won for research and development (R&D), which has increased by more than 19% compared to this year and is the largest ever. The previous administration under Yoon Suk-yeol had reduced this expenditure. Additionally, it is noteworthy that the budget allocates funds for artificial intelligence (AI), establishes a new National Growth Fund, creates a transition support fund to assist the conversion of internal combustion engine vehicles to electric vehicles, expands the eligibility for child allowance support, and reflects budget support for issuing local love gift certificates. The government will review and approve this budget plan at today's State Council meeting.