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| ▲ Democratic Party leader Lee Jae-myung attends a press conference at the National Assembly in Seoul, on Nov. 2, 2023. (Yonhap) |
DP leader-budget
Opposition leader calls for expanded government spending, vows to attain 3 pct growth rate
By Kang Jae-eun
SEOUL, Nov. 2 (Yonhap) -- Opposition leader Lee Jae-myung on Thursday criticized President Yoon Suk Yeol's belt-tightening fiscal policy and vowed to attain a 3 percent growth rate next year in an apparent bid to woo voters ahead of next year's general elections.
Lee's pledge came a day after Yoon proposed a 657 trillion-won (US$487 billion) national budget for next year, which represents the smallest on-year increase since 2005, and pledged to pursue a sound fiscal policy in order not to pass debts onto future generations.
"If the government neglects the economy and people's livelihood as it does now without any plans, the economy will worsen even more," Lee, the chairman of the Democratic Party (DP) said in a press conference, urging the government to change its economic policy stance.
South Korea's economy is facing various headwinds because the government focused on fiscal soundness instead of measures to boost the economy, Lee said, noting the country has recently experienced simultaneous drops in spending, investment and exports.
"We will push ahead with the goal to attain a 3 percent economic growth rate for the recovery of the public economy," he said.
To that end, Lee proposed the government adopt "two engines" to boost the economy.
He called for more government funding on research and development and social infrastructure, and increased spending to boost consumer demand and alleviate the country's deepening income divide.
"Considering the sunk cost of various lines of research, the budget cut is a waste of money, not saving," Lee said, describing the decision as a serious "blunder."
In August, the government announced a budget cut of 13.9 percent in the research and development sector, which was the first reduction in eight years, saying it wants to improve past inefficiencies in ways the money is being spent and cut funds provided to "cartels" with vested interests.
Lee said the DP will push for the incorporation of a 1-year temporary consumer tax deduction to boost household spending. He also proposed a public-private program to reduce around 3 trillion won worth of interest for household loans and a discounted public transportation pass for young people.
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