GNP Warns on State Finances

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GNP Warns on State Finances

The main opposition Grand National Party on Friday published a book detailing 16 cases of government policies and projects that will threaten the finances of the next administration.

"The next administration will have to spend a minimum of 5 trillion won annually for maintaining the Livelihood Protection Act plus untold amounts for the Motherhood Protection Law, which goes into effect in 2003, and the cancelation of debts held by the nation's farmers," the party said in a press release.

The chief opposition policymaker, Mok Yo-sang, said that the "administration is signing off on pork-barrel projects even as the state of government finances worsen and national debt snowballs."

"The superficial reform of the four sectors has created a burden of endless reforms," Mr. Mok said, referring to the Kim Dae-jung administration's restructuring of the corporate, financial and public sectors.

Rep. Kang Un-tae, a policymaker for the ruling Millennium Democratic Party, charged that the opposition is trying to weaken public confidence in the economy.

"The rising national debt over the past three years is a result of the government having intervened to correct management failures wrought by decades of collusive ties between politics and business and government-directed financing," Mr. Kang added.

However, some criticism is coming from within the ruling party itself, especially in regard to the Motherhood Protection Act and the law to support victims of the government crackdown against pro-democracy protesters in Kwangju in 1980.

The Motherhood Protection Act would extend the existing 60 days of maternity leave to 90 days. It is advocated by women's groups but opposed by businesses, who say the bill would raise their operating costs and hurt economic productivity.

The change would cost the government an estimated 260 billion won in the first year.

The opposition also said the government will need an additional 36 trillion won to raise teacher salaries and improve schools.



by Kim Jung-wook

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