Extra budget plan faces obstacle

Opposition parties oppose supplementary budget for job creation

By Kim Hyo-jin

The Moon Jae-in government’s extra budget plan ― the first of its kind aimed solely at creating jobs ― faces a bumpy road to get National Assembly approval.

The ruling Democratic Party of Korea (DPK) is set to push for the bill during a June parliamentary session, saying swift implementation is the key to maximizing its effectiveness. However, opposition parties oppose it, saying the aim of job creation is not a valid reason to draft an extra budget.

The Ministry of Strategy and Finance plans to submit the 11.2 trillion won ($10 billion) supplementary budget proposal to the Assembly on Wednesday.

Stressing the need for the extra budget, Moon is considering giving an address at the Assembly to explain the budget plan and seek the opposition parties’ consent, which will be his first parliamentary presence for a speech since his inauguration in early May.

The ruling party said it would hold a vote for the budget bill on June 27 during the last plenary session of the month.

It emphasized there is no threat of harming fiscal sustainability as the budget will be financed by accumulated tax revenue without issuing national bonds, the grounds on which the ruling party believes the legislature should back its smooth passage.

“The extra budget this time only focused on job creation. There is no pork barreling for regional interests, social overhead capital, or deficit-causing issuance of national bonds,” Rep. Kim Tae-nyeon, DPK chief policymaker, said during a press briefing Monday, reflecting his expectations the opposition bloc would cooperate.

But for now, the six-seat Justice Party is its only supporter. The passage of the bill requires a majority vote in the 299-seat Assembly. The ruling party only holds 120 seats.

The main opposition Liberty Korea Party (LKP) viewed the extra budget plan negatively, claiming the case is not supported by any legal requirements stated in the National Finance Act.

It states a supplementary budget can be drafted in the case of natural disaster, economic depression, mass unemployment, changes in inter-Korean relations, major changes to domestic and foreign political and economic conditions and an increase in national spending caused by the enactment of laws.

“We cannot agree on an extra budget if it is mainly aimed at creating jobs in the public sector,” LKP floor leader Rep. Chung Woo-taik said.

The minor opposition People’s Party agreed, saying various economic indexes are now showing signs of economic recovery.

The opposition parties expressed concerns the extra budget plan is intended to increase public jobs.

When drafting the extra budget, the government laid out its aim to create over 110,000 jobs including 71,000 in the public sector.

“We are opposed to the job policy driven by the government,” said Rep. Jeong Yong-ki, LKP spokesman. “It would cost the taxpayers while having a trivial impact on economic recovery, and in the long term, an increase in public jobs will only lead to a severe financial burden for the government.”

People’s Party floor leader Kim Dong-cheol echoed his view, saying, “The people would not agree on the government’s plan to seek job creation in the form of an extra budget, rather than the main budget.”