The ruling Saenuri Party on Friday formally called on the government to set a supplementary budget to stabilize deteriorating economic conditions.
Rep. Na Seong-lin, the party's deputy chief policymaker, said after a meeting with senior government officials including Finance Minister Bahk Jae-wan, that an extra budget is vital for the national economy that has been hit hard by the recent global downturn.
Seoul initially predicted Asia's fourth largest economy would grow 3.7 percent in 2012, but downgraded this to just 3.3 percent in June in the face of persistent eurozone woes that have affected trade and investments.
"Saenuri has strongly urged the government for a supplementary budget," the lawmaker said.
In the past the party had raised the need for an extra budget to prop up the economy, but never formally demanded Seoul take such a step. The finance ministry, in charge of the government's economic policy, has been adverse to such a plan because it wants to strive for a balanced budget next year.
"The extra money can be used to help small and medium enterprises and support people who have work, but are hard pressed to make ends meet," he said.
He did not give details on the size of the proposed supplementary budget, but hinted it should be at least 10 trillion won ($8.82 billion).
Na said that since the government has indicated this year's net budget surplus could reach 8.5 trillion won, the target could be reached by coming up with just 1.5 trillion won. A net budget surplus refers to money left in the government's coffers after expenditures.
The party policymaker, in addition, said that the government has followed through on 86 of the 102 campaign pledges made by the party ahead of the April 11 parliamentary elections. (Yonhap)