Song Eon-seog, floor leader of the People Power Party, said on the 17th regarding the government's plan to draw up a supplementary budget, "A supplementary budget is not a cure-all for solving economic problems, and if it is designed poorly, it can poison the economy."
At a floor countermeasures meeting held at the National Assembly this morning, the floor leader said, "Article 89 of the National Finance Act limits the requirements for preparing a supplementary budget to cases where war, large-scale disasters, economic downturns, or mass unemployment occur. The government and the ruling party must clarify which of these applies to this supplementary budget," and stated accordingly.
He said, "Article 90 stipulates that the surplus funds from excess tax revenues must first be used to repay the nation's debt," adding, "Even if excess tax revenues occur, they must be used first to repay government debt; using them for fiscal handouts is illegal in itself."
He continued, "The capacity to raise funds for the supplementary budget is also insufficient," adding, "The consolidated fiscal balance without social security fund is in a 10.78 trillion won deficit, and national liabilities are approaching 1,300 trillion won. They say corporate tax receipts are coming in strong, but considering the additional expenditure following the Gwangju–South Jeolla integration, I doubt how much financing can actually be secured."
He added, "Undiscriminating cash handouts to all citizens should be avoided. We need pinpoint support measures centered on industrial worksites directly hit by high oil prices," and said, "It must be designed precisely for industries vulnerable to high oil prices, such as freight, transportation, petrochemicals, and agriculture."
The floor leader said, "Rather than direct cash support, indirect support tools such as interest support on loans or vouchers should be reviewed," adding, "The People Power Party will examine the appropriateness of the contents with the government and, after the submission of the supplementary budget bill, with the ruling party."