On September 3, the National Assembly received a government budget proposal for the next year amounting to 821 trillion won. The proposal, which passed the Cabinet meeting on September 1, was sharply criticized by the People Power Party as a "populist spending budget."
People Power Party leader Jang Dong-hyuk pointed out on his Facebook that the budget has increased by 93 trillion won (12.8%) compared to the previous year. He also mentioned the government's plan to establish a 162 trillion won Future Response Fund, warning that expansionary fiscal policy could trigger inflation and lead to further interest rate hikes.
"As the budget increases, taxes will also rise," Jang said, criticizing the government for attempting to fill its coffers by taking from citizens' wallets and making them dependent on government subsidies. He warned that this could lead to a country where only a privileged leftist class thrives while the public suffers.
Floor leader Jeong Pom-sik also expressed concerns during a Supreme Council meeting, stating, "If we rely on the semiconductor boom to secure petty cash, it will create a crisis for the future of the people." He emphasized that the party would thoroughly scrutinize the budget proposal based on the principle that not a single penny of taxpayer money should be wasted.
Jeong criticized the Future Response Fund, saying, "Those who cut the Blue House's special activity fund of 8.2 billion won as petty cash are now proposing to create a 162 trillion won 'super petty cash.' If tax revenues increase, we should pay off debts, not increase petty cash."
Concerns are rising within conservative circles as monetary authorities have raised interest rates twice in a row, signaling a tightening stance while the government pursues expansionary fiscal policies. There are fears that if monetary and fiscal policies clash in this manner, it could fail to revive the economy and control inflation. Some experts warn that worsening conditions could lead to stagflation, where economic stagnation and rising prices occur simultaneously.
Members of the People Power Party on the National Assembly's Finance and Economy Committee raised issues with the government's plan to accumulate 104.4 trillion won in 'surplus funds' for the Future Response Fund instead of paying off debts during a period of rising interest rates. They issued a statement saying, "The target return rate, investment scope, and responsibility for losses of the 104 trillion won surplus fund will be decided 'after the bill passes,' which is akin to asking the National Assembly to sign a blank check for 104 trillion won."
They also criticized the plan to issue 100 trillion won in government bonds while accumulating surplus funds, arguing that it amounts to borrowing to fill the coffers while the government holds the keys to the treasury. The People Power Party's finance committee members vowed to scrutinize these bills closely during the regular session of the National Assembly to protect citizens' property rights and the Assembly's budget review authority.
People Power Party leader Jang Dong-hyuk pointed out on his Facebook that the budget has increased by 93 trillion won (12.8%) compared to the previous year. He also mentioned the government's plan to establish a 162 trillion won Future Response Fund, warning that expansionary fiscal policy could trigger inflation and lead to further interest rate hikes.
"As the budget increases, taxes will also rise," Jang said, criticizing the government for attempting to fill its coffers by taking from citizens' wallets and making them dependent on government subsidies. He warned that this could lead to a country where only a privileged leftist class thrives while the public suffers.
Floor leader Jeong Pom-sik also expressed concerns during a Supreme Council meeting, stating, "If we rely on the semiconductor boom to secure petty cash, it will create a crisis for the future of the people." He emphasized that the party would thoroughly scrutinize the budget proposal based on the principle that not a single penny of taxpayer money should be wasted.
Jeong criticized the Future Response Fund, saying, "Those who cut the Blue House's special activity fund of 8.2 billion won as petty cash are now proposing to create a 162 trillion won 'super petty cash.' If tax revenues increase, we should pay off debts, not increase petty cash."
Concerns are rising within conservative circles as monetary authorities have raised interest rates twice in a row, signaling a tightening stance while the government pursues expansionary fiscal policies. There are fears that if monetary and fiscal policies clash in this manner, it could fail to revive the economy and control inflation. Some experts warn that worsening conditions could lead to stagflation, where economic stagnation and rising prices occur simultaneously.
Members of the People Power Party on the National Assembly's Finance and Economy Committee raised issues with the government's plan to accumulate 104.4 trillion won in 'surplus funds' for the Future Response Fund instead of paying off debts during a period of rising interest rates. They issued a statement saying, "The target return rate, investment scope, and responsibility for losses of the 104 trillion won surplus fund will be decided 'after the bill passes,' which is akin to asking the National Assembly to sign a blank check for 104 trillion won."
They also criticized the plan to issue 100 trillion won in government bonds while accumulating surplus funds, arguing that it amounts to borrowing to fill the coffers while the government holds the keys to the treasury. The People Power Party's finance committee members vowed to scrutinize these bills closely during the regular session of the National Assembly to protect citizens' property rights and the Assembly's budget review authority.
* This article has been translated by AI.
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