Mixed Reactions in Politics to '10 Trillion Essential Supplementary Budget'… Ruling Party "Appropriate" Opposition "Effect Questionable"

As the government officially announced the preparation of an additional supplementary budget worth 10 trillion won on the 30th, reactions from the ruling and opposition parties diverged.

The ruling party believes that a supplementary budget ranging from 10 to 15 trillion won is appropriate to respond to the wildfire disaster, while the opposition party insists that a supplementary budget of 35 trillion won, including large-scale consumption stimulation projects, is necessary, forecasting a difficult path ahead in the National Assembly's review process.

Park Soo-min, the floor spokesperson for the People Power Party, evaluated the government's supplementary budget announcement on the day as "a very timely response that does not miss the appropriate timing."

The People Power Party also hinted that the supplementary budget scale could be increased within a range not significantly deviating from the government's proposal. According to the People Power Party, the social overhead capital budget proposed earlier by the ruling party to the government can also be sufficiently accommodated within a maximum range of 15 trillion won.

However, the Democratic Party of Korea holds the position that a sufficiently large supplementary budget is necessary not only to overcome the wildfire disaster but also to restore the livelihood economy.

Cho Seung-rae, the chief spokesperson for the Democratic Party of Korea, said, "It is doubtful whether the supplementary budget scale of 10 trillion won proposed by the government can have a meaningful effect in restoring livelihoods and the economy and overcoming disasters amid the current crisis."

Earlier, the Democratic Party argued that the supplementary budget should include four major consumption stimulation package projects, such as providing 250,000 won per citizen in local currency, as outlined in their own supplementary budget plan of 35 trillion won announced in February.

Yonhap News

The local currency support project advocated by the Democratic Party is a point where the positions of the ruling and opposition parties sharply diverge, signaling a potential clash. Park, the People Power Party floor spokesperson, told reporters on the day, "The party and government cannot agree to nationwide cash handouts that go against market economy principles, and it is not good for the country either. Such measures should be excluded."

On the other hand, Oh Ki-hyung, a Democratic Party lawmaker, pointed out on Facebook, "To revive the rapidly deteriorated domestic demand since the internal strife, bold measures that stimulate the psychology of economic agents must be included."

The ruling and opposition parties also differ in their positions regarding the additional allocation of 'disaster contingency funds.' The People Power Party insists on the immediate need to prepare a supplementary budget for contingency funds to respond to disasters such as wildfires and floods. They argue that the contingency funds, which were reduced by about 2 trillion won due to the Democratic Party's unilateral cuts to this year's budget, need to be increased.

However, the Democratic Party holds a negative stance toward the ruling party's request for additional contingency funds, citing that the contingency funds already allocated this year have not yet been used and that there are available budgets within each ministry.

Park Chan-dae, the floor leader of the Democratic Party, said at a National Assembly press briefing on the day, "We should fully utilize the budgets already allocated and add more if there are shortages, but adding contingency funds without a specific purpose is just for political conflict."