Free childcare program drifting away

Ruling party turns cautious about expanding budget

By Jun Ji-hye

A program to provide free childcare for children under five, a key welfare pledge made by President Park Geun-hye, is foundering due to budget problems.

The matter has become a source of conflict between the central administration and local authorities because the central government is under growing pressure to increase its subsidies.

During the run-up to the presidential election last year, Park vowed that her government would fully support home care expenditure for infants under two years old and subsidize daycare fees for those aged between three and five.

Since the system became effective in March, provincial governments have complained that the measure was drawn up without consideration of tight budgetary limits, and describe it as an irrational decision.

“District offices have run out of money. We won’t be able to provide childcare costs from this September. The government’s unilateral decision without prior consultation with local entities worsened the situation,” said Noh Hyun-song, president of the association of district chiefs in the Seoul region, Tuesday.

Speaking at a press conference, the association asked the central government to immediately cover a shortfall of 406 billion won ($364 million).

“We also urge the National Assembly to approve a revision to the Infant Care Law within its June extraordinary session,” said Noh.

The revision calls for the proportion of central government subsidies to rise to 40 percent from 20 percent of costs for free childcare in Seoul, with the rest covered by local councils. The government’s portion would rise to as much as 70 percent from 50 percent in other regions, if the revision is passed in the Assembly.

Proposed in November, it is still pending at the National Assembly Legislation and Judiciary Committee, the last step before it is passed into law.

During their visit to the Assembly, Tuesday, to meet Reps. Choi Kyung-hwan and Jun Byung-hun, floor leaders for the ruling Saenuri Party and main opposition Democratic Party (DP), representatives of provincial and metropolitan governments demanded prompt passage of the revision.

The opposition parties stood with local governments, urging President Park to provide appropriate measures.

“All parties should approve the revision in the June Assembly to ease the burden on provincial governments. At the same time, President Park will have to suggest effective measures to secure a budget for maintaining free childcare in order to appease public concerns,” said DP Chairman Kim Han-gil during a speech, Wednesday.

However, the government and the ruling party remain cautious.

“I share a bond of sympathy about the matter. However, as a member of the ruling party, I have to take the budget issue into account. We need more discussion before passing the revision,” Choi told reporters.

It is expected that the government will have to spend 1.4 trillion won more annually if the revision is approved. The government may then have to draw up another supplementary budget.

The Assembly already approved a 17.3 trillion won supplementary budget early last month to boost the economy and fund welfare spending.

As the system is in danger of foundering in its first year, long-time criticism regarding political populism without sufficient consideration about budget issues has begun to resurface again.