The People Power Party on the 31st criticized the 2026 budget plan recently reviewed and passed at the Cabinet meeting by the Lee Jae-myung government, calling it "a bill for debt party interest burdening the people." Park Hyung-soo, the opposition floor leader of the Special Committee on Budget & Accounts, issued a statement that day, saying, "The Lee Jae-myung government is packaging the 2026 budget plan as 'active fiscal management, leading economy, and inclusive welfare,'" adding, "In reality, it has thrown a tax bomb, tightening the people's belts even further through tax increases."
Park noted, "For the first time since its founding, a budget plan has been organized that transfers 109.9 trillion won in deficit bonds to future generations, which is unprecedented in history," and added, "The health insurance premium rate, which had been frozen at 7.09% for two consecutive years, has been raised to 7.19%, and an increase in electricity rates is anticipated, making it inevitable for employment insurance premiums to rise with support for voluntary retirees, indicating a forecast of increasing public utility fees."
Next year's government debt is expected to reach 1,415 trillion won, increasing by 142 trillion won in just one year. The ratio of government debt to gross domestic product (GDP) is projected to rise from 49.1% this year to 51.6% next year, an increase of 2.5 percentage points, and is expected to reach 59% by 2029. This is a figure approaching the 60% threshold indicated as a red line by organizations like the International Monetary Fund (IMF).
President Lee Jae-myung described the promised "National Growth Fund" budgeted at over 100 trillion won as "the most concerning project." Representative Park stated, "Although it is called the National Growth Fund, it could devolve into a 'people's empty fund,'" also announcing plans to attempt full cuts to the related budget during the National Assembly review process. Park added, "I will thoroughly investigate whether there are no budget requests for supporters, such as bills for job positions for supporters, requests related to the Yellow Envelope Law and company law amendments from the Korean Confederation of Trade Unions (KCTU), and requests for pardons for Cho Kuk and Yoon Mi-hyang, and will demand full cuts accordingly."
◇Transition to 'expansionary fiscal policy,' total expenditure up 8% from previous year
According to the Ministry of Economy and Finance, next year's central government budget plan has a total expenditure size of 730 trillion won. As the first regular budget of the new government, it increased by 54.7 trillion won (8.1%) from the previous year. The previous administration under Yoon Suk-yeol's 'tight fiscal policy' was transitioned to 'expansionary fiscal policy.' The budget plan forecasts total revenue to be 674.2 trillion won, which is an increase of 22.6 trillion won (3.5%) from the previous year. Next year's budget plan will be submitted to the National Assembly in early September and will be finalized in December after reviews by the standing committee and the Special Committee on Budget & Accounts. The statutory processing deadline is December 2.