President Lee Jae-myung said on the 19th, "Recently, the atmosphere has improved a bit, but essentially the pain our people endure seems very great," adding, "It is now time to use the national finances."
President Lee noted during his remarks at a Cabinet meeting that afternoon, "Long-term economic stagnation continues, and especially since the declaration of martial law on Dec. 3 last year, the psychological downturn is severe, leading to difficulties in the field as even existing customers have been lost."
◇ "Healthy finances are important, but consider the essence of government finances"
On the same day, the government drafted a supplementary budget containing plans for additional expenditure amounting to 20.2 trillion won. This comes just a month after the first revised budget of 13.8 trillion won passed the National Assembly prior to the presidential election in May.
Considering the expected decline in tax revenue, when including a projected revenue adjustment of 10.3 trillion won, the total scale of this second supplementary budget amounts to 30.5 trillion won.
President Lee said, "While the principles of healthy finances and fiscal balance are certainly important, it is evident that we should not spend excessively when there are insufficient revenues. However, isn't there an essential role for government finances?"
He added, "When the private sector overheats, it must be restrained, and when the private sector is excessively depressed, it must be stimulated. I believe now is a time when the government's role is necessary because the depression is too severe," and stated, "I think we need to implement more supplementary budgets."
◇ "Those who pay a lot of taxes should at least receive similar benefits"
He also assessed that the implementation of this supplementary budget is meaningful in terms of stimulating the economy and providing benefits to the citizens. In particular, he attracted attention by mentioning that at least equal opportunities should be given to those who pay a lot in taxes.
President Lee said, "First of all, elements that stimulate the economy are important. Secondly, the citizens will benefit, but is it right to consider giving more benefits to some citizens or all? And is it right to exclude anyone entirely? This also involves issues of values and ideology."
He continued, "However, if we consider the necessary expenses when implementing any system as a general principle, who should receive the reflexive benefits from that expenditure? Should it be the poor or the rich who pay a lot of taxes?" and stated, "If we are spending based on some necessity, then I believe it is right that the reflexive benefits should be enjoyed equally by the citizens."
President Lee also suggested that it is not easy to ensure that the effects of the supplementary budget reach all citizens, mentioning both "people who pay more taxes" and "low-income individuals."
The president remarked, "While we cannot ensure that those who pay more taxes receive more benefits, shouldn't we at least provide them with similar treatment?" He added, "In that regard, I think it would be good to offer equal opportunities."
At the same time, he said, "On one hand, there are many low-income individuals who are struggling, so it seems there is a dual aspect in reducing social inequality."