Governing Camp Feuds Over Economic Stimulus Plan
By Michael Ha
Staff Reporter
In the latest example that President Lee Myung-bak's honeymoon period is now over, a prominent member of his own party is speaking out against a supplementary budget plan.
``The Lee administration is either looking down on its own Grand National Party (GNP) or is being very reckless. Do they think they can pass the extra budget plan if I am not around?'' GNP chief policymaker Lee Han-koo said in a radio interview, Wednesday.
He was responding to the government's comment earlier that it will hold off on its efforts to adopt a supplementary, revised budget bill until the next National Assembly session.
The chief policymaker has been critical of President Lee's push to adopt the extra budget that would be used for economic stimulus programs.
The episode shows that Lee's economic and financial policies may face further scrutiny, not only from the opposition parties but also from his own conservative GNP.
His administration has been pushing for a supplementary budget to help boost the sluggish economy.
The government has said it would fund the extra budget from last year's tax surplus, which is reportedly around 15 trillion won ($15 billion). It said it was hoping to use about 4.9 trillion won of the surplus for the budget.
But lawmakers opposing the initiative described it as a kind of artificial stimulus with possible side effects.
They argued that it would make better sense to help boost the economy through deregulation and increased autonomy in the corporate sector.
Lee may also have to convince lawmakers to revise the National Finance Act. The law prohibits a supplementary, revised bill for short-term economic stimulus programs.
The President has argued that his programs would not be a short-term fix, as described in the law, but rather a long-term approach to strengthen the economy.
For now, the administration has taken a step back amid the criticism. It announced over the past weekend that it would not push for an extra budget plan during the current one-month extraordinary parliamentary session.
The government will instead look to resume its efforts in the next 18th National Assembly, which will be inaugurated in June.