The National Assembly Budget Office held Grand Debate on the 2024 Budget Bill on Tuesday, October 31, at 3pm at the Conference Room 1 of the National Assembly Members’ Building to seek the proper direction of the National Assembly’s examination of the government budget proposal.
Chief Cho Euy-sup said in his opening remarks that he hopes the Grand Debate “serves as a momentum to enhance the effectiveness of the National Assembly’s examination of the budget bill by setting forth various opinions and finding constructive alternatives for the main direction of next year's budget and major policies.”
In his encouraging remarks, Speaker Kim Jin-pyo mentioned the day's unprecedented policy discussion involving President Yoon Suk-yeol, the Floor Leaders, and the Chairpersons of the Standing Committees. He said he proposed to President Yoon that such collaborative meetings become a regular practice during budget proposal reviews to foster communication and cooperation. Additionally, he called for the ruling and opposition parties to ensure the budget is passed within the statutory deadline through transparent discussions.
Chairman Seo Sam-seok of the National Assembly's Special Committee on Budget and Accounts, in his congratulatory message, warned against a one-size-fits-all approach to budgeting, noting its potential harm to vulnerable groups such as farmers and fishermen. He stressed the timely passage of the budget as a chance for the National Assembly to reestablish public trust by demonstrating adherence to the law.
The debate, moderated by Professor Ha Yeon-seob from Yonsei University, featured insights from various experts including Kim Dong-il, Deputy Minister for the Budget Office at the Ministry of Economy and Finance; Choi Byung-kwon, Assistant Chief for Budget Analysis at NABO; members of the Special Committee on Budget and Accounts, such as Kang Hoon-sik, Song Eon-seok, and Jang Hye-young; Lee Sang-min, Senior Researcher at Narasallim Research Institute; and Sung Tae-yoon, Professor at Yonsei University.
Deputy Minister Kim Dong-il, in his presentation, described the 2024 Budget’s theme, “Thrifty Finance, Prudent People's Livelihood," which aims to bolster citizens’ welfare and economic vitality through robust fiscal normalization while ensuring fiscal health. He outlined four major investment areas and the budget's key challenges.
Assistant Chief Choi Byung-kwon's presentation, "Key Features and Analysis of the 2024 Budget," delved into a detailed examination of the upcoming budget, highlighting the necessity for enhanced accountability and effectiveness in fiscal spending by restructuring appropriations and reallocating resources to R&D. He advocated for changes to fiscal rules, especially in light of the large fiscal deficit that the government faced this year and suggested that it is necessary to enhance the economic stabilization function of fiscal policy and secure medium- to long-term fiscal stability by introducing an institutional mechanism to expand the repayment of national debt in the event of excess tax revenues.
Rep. Jang Hye-young of the Justice Party, as the first panelist, argued that the 2024 budget should fortify Korea’s future and support the vulnerable. She advocated for restoring the R&D budget and expanding funds for climate crisis response, as well as improving welfare budgets and systems for the vulnerable. She further stated that the National Assembly will work diligently to ensure that the budget deliberations are transparent and open.
Lee Sang-min, a senior researcher at Narasallim Research Institute, explained that the quantitative analysis of the next year’s budget proposal showed an increase in budget for foreign affairs and unification due to an increase in ODA, an increase in reserves that could limit the National Assembly's right to deliberate on the budget, and an increase in social welfare due to the increase in the elderly population and the reflection of inflation, and expressed concerns over reduced R&D budget for climate crisis initiatives.
Professor Sung Tae-yoon from Yonsei University emphasized that while the government's efforts in curbing total expenditure growth for fiscal consolidation can be evaluated positively, fiscal policy has a critical role in responding to economic downturns as the room for monetary policy is constrained due to inflationary pressures.
Rep. Kang Hoon-sik of the Democratic Party emphasized that the first principle of the 2024 budget deliberation to save the Korean economy should be "realizing fiscal democracy," and said he plans to correct unnecessary and excessive budgets in the face of fiscal deficits and increase people-centered budgets for Korean’s livelihood and future investments, including R&D, balanced regional development, and welfare for the weak.
Lastly, Rep. Song Eon-seok of the People Power Party, explained that the government's 2024 budget proposal reflects the importance of managing the national debt in a small, open economy like Korea’s. He noted that while the R&D budget allocation appear to be made with efficacy in mind, there are still areas in need of discussion and improvement during the budget deliberation process.