Opposition Heats Up Supplementary Budget for Cooling Costs After Heating Bills... Choo Kyung-ho Says "No Review"

Park Kwang-on "Support for Vulnerable Groups Including Energy Supplementary Budget"
Choo Kyung-ho "Not Considering Supplementary Budget"

The opposition party has called for the preparation of a supplementary budget to reduce the cooling cost burden on vulnerable groups in anticipation of the summer heatwave. Following the 'heating cost supplementary budget' earlier this year, it is expected that the opposition and the ruling party will clash again over whether to prepare an additional supplementary budget.

On the morning of the 30th, Park Kwang-on, floor leader of the Democratic Party of Korea, said at the party's floor strategy meeting, "Electricity rates have risen by nearly 40% over the past year, and this year an unprecedented heatwave is forecast. Concerns about cooling costs are already growing," adding, "We must immediately mobilize all possible policy measures, including preparing an energy supplementary budget for vulnerable groups."

Park also argued that the government should abandon its austerity stance. He said, "The lesson from advanced economies is clear: increasing fiscal spending leads to GDP growth more distinctly than ultra-rich tax cuts," and added, "Increasing spending to act as a primer for the economy is a very urgent role the government must play now." He emphasized, "At the same time, ultra-rich tax cuts and the austerity stance must be abandoned to improve domestic economic trends."

[Image source=Yonhap News]

Following this, Hong Sung-guk, the party's economic spokesperson, said, "The decline in the fiscal deficit ratio during the COVID-19 phase was undoubtedly due to the government's active fiscal support through supplementary budgets," adding, "The Korean economy is about to enter the rainy season, and since the most vulnerable lower 20% income group is struggling, if we fail to establish drastic measures as Park Kwang-on said, ordinary citizens in our country will inevitably face a more difficult situation starting this fall and winter."

On the same day, Bae Jin-kyo, floor leader of the Justice Party, also said at a meeting with Park Kwang-on, "Discussions on the supplementary budget seem to be the first matter to protect the lives of the people," explaining, "According to Statistics Korea's data, the income gap between the lowest 20% and highest 20% widened further compared to last year, and essential expenses have increased significantly due to inflation."

However, the current government has emphasized a fiscal austerity stance since its inception, insisting on securing fiscal capacity. Accordingly, the Democratic Party has repeatedly clashed with the government by demanding additional fiscal input, such as emphasizing the 'heating cost supplementary budget' earlier this year.

Meanwhile, on the morning of the same day, Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho responded to reporters at the Government Complex Sejong, saying, "At present, we are not considering a supplementary budget," and added, "We will execute the budget without preparing a supplementary budget if possible."

He further explained, "The government has reviewed various alternatives related to the original budget execution, and currently, the government is considering available measures using surplus funds such as reserves," adding, "The government is exploring possible measures by utilizing tax surplus and remaining fund portions, and even if the tax revenue situation worsens somewhat compared to now, we have several measures to respond, so it is possible to manage with those."