Yoon vows to maintain government’s financial soundness

Mar 29, 2023, 09:30 am

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President Yoon Suk-yeol speaks during a Cabinet meeting at the presidential office in Seoul on March 28, 2023./ Source: Pool photo

AsiaToday reporter Lee Wook-jae

President Yoon Suk-yeol said on Tuesday the government will maintain financial soundness by pursuing strong fiscal reforms to “ensure not a single penny of taxpayers’ money goes to waste.”

The president has stressed belt-tightening policies by distinguishing between good and bad in major spendings following years of reckless expansionary fiscal spending under the Moon Jae-in government.

“The government will boldly spend next year’s budget in what it is supposed to do,” Yoon said during a Cabinet meeting at the presidential office in Seoul.

During the meeting, the Cabinet approved the government’s guidelines for the 2024 budget, which include the fiscal management stance for the next year, investment focus, and fiscal innovation directions.

As the president emphasized fiscal soundness, next year’s budget is expected to be tied to less than 5 percent of fiscal expenditure growth in accordance with the government’s 2022-26 fiscal management plan. In this case, the country is expected to draw up a national budget of around 670 trillion won (US$523.96 billion) for next year.

“Despite such a belt-tightening plan, the government will spend boldly in what it is supposed to do, such as defense and the rule of law, as well as in efforts to nurture a future growth engine, create quality jobs and strengthen welfare programs for vulnerable people,” Yoon said.

“We need to thoroughly block any unfair financial leaks in the form of subsidies for organizations that lack transparency or are populist distributions of cash, and streamline the welfare delivery system,” he added.

As President Yoon previously demanded to review state subsidies for non-profit organizations and to improve transparency in labor accounting, measures such as cuts in subsidies or suspension of support are expected.

Meanwhile, Unification Minister Kwon Young-se gave a briefing during the Cabinet meeting on the government’s first public release of a North Korean human rights report this Friday.

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