Gov't calls for fiscal expansion to address structural problems
Holding its second finance and budget strategy meeting on Thursday,... the Moon administration announced plans to hike the government's budget to fire up its income-led growth drive.
It's all aimed at supporting forward-looking growth and creating a fairer economy for all.
Kim Hyesung reports.
Increasing government spending to tackle the nation's high unemployment and low fertility rates.
During the Moon administration's second finance and budget strategy meeting that lasted about five hours on Thursday, government officials agreed on the need to hike total spending in the coming years to tackle the structural problems.
According to the government's existing five-year budget plan between 2017 and 2021, government spending will rise by five-point-seven percent next year.
A rate higher than that would mean a budget of over 450 trillion Korean won, or 417 billion U.S. dollars for 2019.
Government officials, including those from the opposition party, said more budget spending is needed to support the lower-income class.
Officials including the minister of trade and minister of employment and labor said the efficient use of government funds is critical in addressing issues like unemployment and fine dust.
Both President Moon Jae-in and Prime Minister Lee Nak-yeon pointed out the importance of setting priorities to reduce waste and boost coordination between ministries.
Lastly, participants discussed ways to tackle the nation's ultra-low fertility rate, which hit a record low of 1-point-zero-five last year.
Housing support for newlywed couples, increasing infant care facilities at workplaces and changing cultural awareness were pointed out as possible solutions.
President Moon emphasized the need to actively use budget at the right time to address economic problems.
The government will set its 2018 to 2022 five-year budget plan based on Thursday's meeting.
The detailed amount of spending will be announced in September when the government submits its plan to the National Assembly.
Kim Hyesung, Arirang News.
It's all aimed at supporting forward-looking growth and creating a fairer economy for all.
Kim Hyesung reports.
Increasing government spending to tackle the nation's high unemployment and low fertility rates.
During the Moon administration's second finance and budget strategy meeting that lasted about five hours on Thursday, government officials agreed on the need to hike total spending in the coming years to tackle the structural problems.
According to the government's existing five-year budget plan between 2017 and 2021, government spending will rise by five-point-seven percent next year.
A rate higher than that would mean a budget of over 450 trillion Korean won, or 417 billion U.S. dollars for 2019.
Government officials, including those from the opposition party, said more budget spending is needed to support the lower-income class.
Officials including the minister of trade and minister of employment and labor said the efficient use of government funds is critical in addressing issues like unemployment and fine dust.
Both President Moon Jae-in and Prime Minister Lee Nak-yeon pointed out the importance of setting priorities to reduce waste and boost coordination between ministries.
Lastly, participants discussed ways to tackle the nation's ultra-low fertility rate, which hit a record low of 1-point-zero-five last year.
Housing support for newlywed couples, increasing infant care facilities at workplaces and changing cultural awareness were pointed out as possible solutions.
President Moon emphasized the need to actively use budget at the right time to address economic problems.
The government will set its 2018 to 2022 five-year budget plan based on Thursday's meeting.
The detailed amount of spending will be announced in September when the government submits its plan to the National Assembly.
Kim Hyesung, Arirang News.