The first unilateral passage of next year's budget
Published: 11 Dec. 2024, 19:06
Updated: 11 Dec. 2024, 23:00
The opposition-led National Assembly passed next year’s budget of 673.3 trillion won ($471.5 billion), 4.1 trillion won short of the government’s proposed 677.4 trillion won package. It is the first time in constitutional history a budget scheme was passed without bipartisan agreement as the governing party failed to persuade the main opposition against the cuts till the last minute. The axing goes to special activity outlays for the presidential office’s secretariat; the national security office; the budget for law enforcement offices and the state audit agency; and the government reserve fund, which was halved. There is also no increase in the spending to subsidize public livelihood, including the national insurance subscription.
The unilateral passage at least saved a budget vacuum that could have worsened the country’s credibility on top of the power vacuum. Still, the main opposition’s show of its majority force on the universal budgetary agenda cannot be appropriate. Democratic Party (DP) head Lee Jae-myung has proposed an emergency economic council among political parties and the government to join forces on saving the economy while allowing his party to go solo on the budget.
Korea has lost its chance of manifesting the economic fundamentals unaffected by political turmoil. Bank of Korea Gov. Rhee Chang-yong asked opposition members who visited his office before the budgetary bill passage to cooperate with the government and rivaling party for stable economic management regardless of political circumstances to show that Korea’s economic process was intact to foreign investors.
The opposition party had been irresponsible in their cuts in the government outline. The sticking point in the budgetary review had been differing thoughts over the budget for local government gift tokens, a signature agenda of Lee Jae-myung.
The DP causally asked the government to file for a supplementary budget if it runs short of money. The axing in special activity expenses is also controversial. It has abused its majority power by punishing the agencies it disapproves by denying them of extraordinary expenses. Will it increase their budget if it gains governing power? The DP is suspected of leaving room for an early supplementary budget since there is a chance of it seizing the next governing rule after impeachment or another form of early exit by the president. The state budget directly impacts public lives. The economy faces a menacing climate amid slow growth in the 1-percent range and Trump 2.0’s protectionist polices. The downsized budget, which already has been restrictive, could provide little help for the troubled economy. The DP outstretched its majority power by weaponizing the budgetary bill. Its excessive actions can backfire. At such unprecedented times, it must show restraint and responsibility.
The unilateral passage at least saved a budget vacuum that could have worsened the country’s credibility on top of the power vacuum. Still, the main opposition’s show of its majority force on the universal budgetary agenda cannot be appropriate. Democratic Party (DP) head Lee Jae-myung has proposed an emergency economic council among political parties and the government to join forces on saving the economy while allowing his party to go solo on the budget.
Korea has lost its chance of manifesting the economic fundamentals unaffected by political turmoil. Bank of Korea Gov. Rhee Chang-yong asked opposition members who visited his office before the budgetary bill passage to cooperate with the government and rivaling party for stable economic management regardless of political circumstances to show that Korea’s economic process was intact to foreign investors.
The opposition party had been irresponsible in their cuts in the government outline. The sticking point in the budgetary review had been differing thoughts over the budget for local government gift tokens, a signature agenda of Lee Jae-myung.
The DP causally asked the government to file for a supplementary budget if it runs short of money. The axing in special activity expenses is also controversial. It has abused its majority power by punishing the agencies it disapproves by denying them of extraordinary expenses. Will it increase their budget if it gains governing power? The DP is suspected of leaving room for an early supplementary budget since there is a chance of it seizing the next governing rule after impeachment or another form of early exit by the president. The state budget directly impacts public lives. The economy faces a menacing climate amid slow growth in the 1-percent range and Trump 2.0’s protectionist polices. The downsized budget, which already has been restrictive, could provide little help for the troubled economy. The DP outstretched its majority power by weaponizing the budgetary bill. Its excessive actions can backfire. At such unprecedented times, it must show restraint and responsibility.
with the Korea JoongAng Daily
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