Lee hints at expansionary fiscal policy to spur growth

President Lee Jae Myung, left, speaks during a meeting at a presidential office, Wednesday. Joint Press Corps

President Lee Jae Myung on Wednesday raised the possibility of supporting an expansionary fiscal policy, calling for measures to improve the efficiency in government spending to boost economic growth.

Lee voiced concerns over limited financial resources to push forward government initiatives during a meeting with financial officials and economic experts to discuss ways to improve efficiency in budget spending.

"Although fiscal policy should serve as a catalyst for growth, tax revenues are decreasing. The slowdown in economic growth has reduced revenue, making national finances vulnerable," Lee said.

Lee urged participants to find ways to redirect wasteful spending toward priority areas that can stimulate the economy and improve livelihoods, while considering ways to increase government finances.

"If you can sow a bushel of seeds now and harvest a sack of grain in the fall, shouldn't you borrow the seeds and sow them?" he said. "When I try to borrow seeds from the neighbor, there are people who argue, 'Why borrow? You should live within your means.'"

His remarks were seen as backing an expansionary fiscal stance, in which the government borrows money to increase spending with the expectation that greater economic activity will generate higher tax revenues in the future.