South Korea Unveils Bold $22.1 Billion Budget Plan to Boost Economy
South Korea proposes a $22.1 billion supplementary budget to counter economic downturn, featuring cash payments, industry support, and revised revenue forecasts. President Lee Jae Myung emphasizes economy stimulation and equitable benefits distribution. The plan includes cash coupons and industry aid, aiming to foster growth amid fiscal challenges.
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- South Korea
In a bid to bolster the economy amid a downturn, South Korean President Lee Jae Myung has proposed a supplementary budget worth 30.5 trillion won ($22.1 billion). Announced on June 19 by the Korea Herald, the proposal seeks to rectify a 10.3 trillion won shortfall in projected revenue, a first in five years.
Speaking at a Cabinet meeting, President Lee underscored the need for fiscal intervention, stressing the importance of stimulating the economy and ensuring fair distribution of benefits. The plan, approved by the Cabinet, awaits submission to the National Assembly and emphasizes universal cash payments as a key component.
The budget outlines an additional 20.2 trillion won in spending, largely directed towards economic and livelihood support. Central to this is a 10.3 trillion won cash distribution initiative, with phased payments tailored by income. Industry support includes 2.7 trillion won for construction and funds for startups and emerging sectors.
Despite increasing fiscal deficits, the government anticipates a slight economic growth boost, with projections from the Bank of Korea and IMF ranging from 0.8 to 1 percent. The budget also involves debt control measures, like issuing treasury bonds, to manage the fiscal gap sustainably.
(With inputs from agencies.)
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