Park Hongkeun: "Second Supplementary Budget to Be Considered If Middle East Situation Prolongs, Depending on Fiscal Capacity"

Minister of Planning and Budget Park Hongkeun commented on the possibility of a second supplementary budget due to the Middle East war, saying on April 6, "If the situation truly becomes prolonged or if there is additional significant damage, we may be able to make a decision while considering our fiscal capacity."

Minister Park made these remarks during an appearance on MBC Radio's "Kim Jongbae's Focus" program on the same day.

He added, "As the war continues, oil prices could surge far more than we anticipated. These are all factors we cannot predict," and further stated, "No one can say they are 'not considering' a second supplementary budget at all, because it is impossible to foresee every scenario."

However, he also said, "It is too early to make such a judgment right now," and did not explicitly state whether a second supplementary budget would take place.

Regarding President Lee Jaemyung mentioning an emergency fiscal order at last month's Cabinet meeting, Park explained, "An emergency fiscal order ultimately requires the approval of the National Assembly according to the Constitution or legal regulations," and interpreted the President's remarks as meaning, "In times of economic crisis or emergency, all policy tools should be considered."

Although the government decided to fund this supplementary budget with excess tax revenue rather than issuing government bonds, when asked about concerns that the tax revenue increase could slow in the future due to the ongoing effects of the war, he anticipated, "While there could be some impact on the semiconductor and securities sectors from the Middle East market, the boom is expected to continue for the time being."

In response to claims that the supplementary budget would increase the fiscal burden on local governments, Park countered that while local governments are required to match a portion of project costs, "since local allocation tax will be distributed, there should be more than enough funds to cover those expenses."

This content was produced with the assistance of AI translation services.