People Power Party Demands 50 Trillion Won Supplementary Budget... "Funding Through Expenditure Restructuring" (Comprehensive)

Kim Ki-hyun "Cannot Accept Budget Allocation Without Restructuring Expenditures"

Kim Ki-hyun, floor leader of the People Power Party, is attending the floor strategy meeting held at the National Assembly on the 21st and delivering opening remarks. Photo by Yoon Dong-joo doso7@

[Asia Economy Reporter Hyunju Lee] The People Power Party has demanded an additional supplementary budget (supplementary budget) of up to 50 trillion won. While the stance is to secure funding through expenditure restructuring, it has become difficult to avoid criticism that this is an election-oriented 'vote-buying strategy.'

Kim Ki-hyun, the floor leader of the People Power Party, said to reporters after a meeting on the morning of the 21st, "We believe that support for self-employed and small business owners who need immediate assistance must be firmly provided," adding, "The overall estimated funding size is expected to be around 45 to 50 trillion won."

The reason the budget amount ballooned from the 14 trillion won proposed by the Ministry of Economy and Finance on the same day is that the People Power Party significantly raised the support funds for small business owners and self-employed whose sales have decreased due to COVID-19 from the current 1 million won to up to 10 million won. The Ministry of Economy and Finance calculated that 14 trillion won is needed by raising the support fund from the current 1 million won to 3 million won. Kim explained, "The additional amount we propose on top of the government plan is about 32 to 35 trillion won." The People Power Party, which was initially negative about the supplementary budget, proposed an expanded supplementary budget to immediately avoid criticism of being passive in supporting small business owners. If the supplementary budget bill, which is not increased due to conflicts between the party and the government, passes, it is interpreted as a move to hold the ruling party responsible.

Kim also mentioned the funding plan. He said, "It is unacceptable to prepare a supplementary budget without any expenditure restructuring." The People Power Party maintains the position that additional issuance such as deficit bonds should be prevented and the supplementary budget should be made by adjusting the existing budget allocated for this year. The budget for this year, amounting to 607.7 trillion won, was passed by the National Assembly on the 3rd of last month. It is the largest scale ever.