'Corona Supplementary Budget' Proposed by Ruling Party: "Taxes Should Be Used in Times Like This"

[Image source=Yonhap News]

[Asia Economy Reporter Wondara] The Democratic Party of Korea is urging the formulation of a supplementary budget bill to respond to COVID-19. Initially, the party preferred to use the reserve fund first instead of a supplementary budget, but as confirmed COVID-19 cases surged in the Daegu and Gyeongbuk regions, they have taken out the supplementary budget card.

Lee Hae-chan, leader of the Democratic Party, said at the Supreme Council meeting held at the National Assembly on the morning of the 21st, "Our party’s Yeongnam region election committee chairpersons Kim Bu-gyeom, Kim Young-chun, and Kim Du-kwan have urged the urgent preparation of a supplementary budget," adding, "We hope the party and government will actively prepare measures to protect people’s livelihoods and revitalize the economy."

Former Prime Minister and co-chair of the Democratic Party’s election committee Lee Nak-yeon also appeared on KBS radio that day, emphasizing, "If necessary, we must prepare to formulate a supplementary budget," and said, "Opposition leaders say not to spend taxes, but taxes are meant to be used in times like this."

Members of the Democratic Party’s policy group, Together Future, also held a press conference that day urging the formulation of a supplementary budget. Nineteen Democratic Party lawmakers, including Ki Dong-min, stated, "The number of confirmed cases in Daegu and Gyeongbuk has risen to 111," and urged, "All negotiation groups in the political sphere should gather and start discussions for the supplementary budget formulation."

Earlier, Democratic Party lawmakers representing the Yeongnam region, including Kim Bu-gyeom, Kim Young-chun, and Kim Du-kwan, had already called for the establishment of a pan-governmental plan to minimize the damage to the people’s economy caused by the COVID-19 situation, urging the formulation of a supplementary budget, the establishment of a special committee within the party, and the holding of an emergency party-government consultation.

On the other hand, the United Future Party advocates using the reserve fund first. After an emergency COVID-19 meeting, United Future Party floor leader Shim Jae-cheol told reporters, "The principle of fiscal execution is to use the existing reserve fund first, and if that is not enough, then proceed with a supplementary budget. It is important to honestly discuss how much reserve fund is needed and seek the National Assembly’s approval first."

The Democratic Party and the government plan to hold a high-level party-government consultation on the 23rd to deeply discuss the supplementary budget. Previously, at the party-government consultation on the 5th, it was concluded that they would respond with a reserve fund of 3.4 trillion won and not formulate a supplementary budget.