'Largest Ever' 35 Trillion Won 3rd Supplementary Budget, Hasty Deliberation in Less Than Ten Days Unavoidable

[Image source=Yonhap News]

[Asia Economy Reporter Wondara] The government has submitted the third supplementary budget bill (supplementary budget) worth a record 35.3 trillion won to the National Assembly, but there are concerns about the possibility of a hasty review. While the second supplementary budget for emergency disaster relief payments was simple in content, this supplementary budget is vast and complex not only in scale but also in content, and the schedule for discussion in the National Assembly is tight.

On the morning of the 23rd, President Moon Jae-in urged the passage of the supplementary budget at the Cabinet meeting held at the Blue House, saying, "Matters related to the operation of the National Assembly are solely for the National Assembly to decide. However, issues directly related to the lives and livelihoods of the people must not be delayed for any reason," and added, "The passage of the supplementary budget is more urgent and essential than anything else to protect the lives of the people." Kim Tae-nyeon, the floor leader of the Democratic Party of Korea, also said at the party strategy meeting held at the National Assembly that morning, "We have conceded as much as we could," and "Now, as the ruling party in a national emergency, we will choose and decide. We will proceed with the necessary procedures to finalize the supplementary budget and take responsibility for the results."

There are only ten days left until the May National Assembly deadline (July 4), which the Democratic Party aims to meet for the passage of the supplementary budget. The schedule for the return of Joo Ho-young, the floor leader of the United Future Party, who went back to his constituency in protest against the Democratic Party's unilateral election of six standing committee chairs including the chairman of the Legislation and Judiciary Committee, has not been set, so the organization of the National Assembly has not yet reached an agreement. Accordingly, the first supplementary budget review took 12 days, and the second supplementary budget review took 14 days. Compared to this, to pass the much larger third supplementary budget within this month, the ruling party would have to complete the review within a week even if acting alone.

Concerns are emerging inside and outside the National Assembly that the delay in organizing the Assembly will lead to a hasty review of this supplementary budget. A National Assembly official said, "If all procedures such as policy questioning by the Budget and Accounts Committee are simplified, the supplementary budget can be passed in just two days, including the Ministry of Economy and Finance's sheet work." In fact, the second supplementary budget for the nationwide emergency disaster relief payments was passed in the plenary session in the afternoon after the Budget and Accounts Committee met in the morning. During this process, preliminary reviews by standing committees such as the Defense Committee were all skipped.

Lee Sang-min, director of the National Fiscal Research Institute, said, "The second supplementary budget required political judgment because its content was simple, but the third supplementary budget requires considerable time for the National Assembly to deliberate." He also pointed out, "The third supplementary budget contains content that 'steps on the accelerator and brake simultaneously' by sharply reducing local finances increased through the second supplementary budget, so discussion in the National Assembly is necessary."

In the ruling party and each standing committee, inquiries about procedural interpretations are continuing amid this unprecedented situation. Some speculate that the preliminary review stage by standing committees might be skipped and the Budget and Accounts Committee's main review stage could proceed, but according to Article 84, Paragraph 1 of the National Assembly Act, referral of the budget bill to standing committees is mandatory, so time spent in standing committees is inevitable.