South Korea's Bold Fiscal Strategy: Lee's Universal Cash Handout Plan
South Korea's new administration unveils a $14.7 billion extra spending plan to boost its economy. President Lee Jae Myung prioritizes economic recovery through fiscal expansion. The plan includes universal cash handouts and support for key sectors. The initiative will increase the fiscal deficit and government debt amid slow growth forecasts.
In a decisive move to stimulate South Korea's struggling economy, President Lee Jae Myung's administration has introduced a supplementary budget of $14.7 billion. This expansionary fiscal policy aims to reignite domestic demand, focusing on universal cash handouts and sector-specific supports.
Lee, backed by the newly elected government, asserts the importance of prompt action as the nation's economic outlook dims. With a revised growth forecast of just 0.8% for the year, largely attributed to global trade tensions and internal upheavals, this initiative is seen as a crucial response.
The budget proposal includes significant public spending to distribute vouchers to citizens and bolster industries such as construction and technology. While this move pushes the fiscal deficit to new heights, proponents argue it's necessary to curb economic stagnation.
(With inputs from agencies.)
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