Ruling and Opposition Parties Begin Budget Committee Negotiations
Local Governments' Share of Livelihood Recovery Coupons Also at Issue
Plenary Session for Budget Bill May Be Delayed to July 4
The review of the supplementary budget bill has moved from the subcommittee of the National Assembly Special Committee on Budget and Accounts to direct negotiations between the ruling and opposition party secretaries. The proposed increase in special activity funds for the presidential office has emerged as a key point of contention.
On July 2, the Budget Adjustment Subcommittee of the National Assembly Special Committee on Budget and Accounts continued its review of proposed budget cuts late into the night. The committee decided that the chair of the Special Committee and the ruling and opposition party secretaries would negotiate behind the scenes, focusing on budget cuts that were put on hold in the subcommittee and budget increases approved by each standing committee. As the budget bill review has not been completed, the plenary session to process the supplementary budget is now expected to be held on July 4.
The previous day, the subcommittee reached agreements on contentious items such as the 400 billion won debt adjustment program for small business owners and the runway extension project at Muan International Airport, both of which had seen significant disagreement between the parties in the Political Affairs Committee and the Special Committee on Budget and Accounts. However, the review of cuts for many other projects was put on hold and remains unresolved. In addition to these deferred items, further reviews of proposed budget increases are required.
The most contentious issue is the special activity fund for the presidential office. During the year-end budget review last year, the special activity fund for the presidential office was cut at the initiative of the Democratic Party, which was then the opposition party. However, in this supplementary budget, the Democratic Party, now the ruling party, has requested an increase. Democratic Party lawmaker Cho Seungrae stated at the full committee meeting, "The special activity fund is used for activities of the Presidential Secretariat and the National Security Office that require a high level of security due to their direct connection to national interests and security. An increase is necessary for the smooth operation of state affairs," and called for the budget to be raised.
In response, Park Hyungsoo, the People Power Party secretary of the Special Committee on Budget and Accounts, criticized the move in the subcommittee, calling it "truly shameless." On the other hand, Democratic Party lawmaker Lim Mi-ae countered, "For the past three years, there has been no fairness in controlling or operating power agencies, and since the agencies could not prove their own expenditures, it was only natural for the National Assembly to exercise oversight. It is also natural for the new government, which is reorganizing power agencies, to request a budget."
Another point of contention is how to allocate the financial burden for livelihood recovery consumption coupons between local governments and the central government. It has been reported that the Special Committee is considering selective allocation of this burden based on fiscal conditions, instead of having the central government shoulder the entire cost.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
