Yoon says retrenchment inevitable for sake of the people

Jun 29, 2023, 09:14 am

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President Yoon Suk-yeol speaks at a national financial strategy meeting held at Cheong Wa Dae on June 28, 2023./ Source: Yonhap

AsiaToday reporter Hong Sun-mi

President Yoon Suk-yeol said Wednesday that retrenchment and sound finances are now inevitable if the nation and the people are truly considered, instead of political ambitions, in response to the opposition party’s demand for economic stimulus through fiscal spending, such as a supplementary budget bill.

Yoon made the remark while presiding over a national financial strategy meeting with government and ruling party officials. “There is no political power to like unpopular retrenchment and sound finances. We do it because it is inevitable,” he said.

His remarks suggest that the government has no choice but to focus more on securing fiscal soundness at a time when the tax revenue shortage is approaching 40 trillion won due to the previous government’s excessive fiscal spending.

“Some people have been unable to overcome their financial addition and continue to call for increasing cash expenditures even if it requires getting more loans,” Yoon said, adding, “Such behavior is typical act of stealing from the future generation that must be rejected.”

“Whether a government truly cares about its people can be determined by whether it manages its finances soundly for the country and future generations rather than by immediate political gains and losses,” he said.

On the current national debt, he said, “The national debt, which had been kept at 600 trillion won, rose by 400 trillion won during the previous government, increasing the total to over 1,000 trillion won. We carried out the largest ever expenditure restructuring of 24 trillion won.” He stressed that international credit rating agencies, which voice concern over the country’s fiscal health, are positive about the government’s efforts to improve its fiscal health last year.

“Just as companies that boldly pushed for structural reform in times of economic difficulties turn the crisis into opportunity and growth further, the government should also take it as an opportunity for innovation to normalize and reform finances when financial conditions are not good,” he said. “Unlike the previous government, our government will maintain a principle of responsible and sustainable fiscal management.”

He added that money must be spent properly on areas that need it the most, including national defense, law enforcement, protecting the weak and creating quality jobs.

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