Focus on helping those hit by COVID-19
The Ministry of Economy and Finance is on a collision course with the ruling Democratic Party of Korea (DPK) over whether to provide COVID-19 relief aid to all citizens. The clash came Tuesday, one day after the leaders of the DPK and the main opposition People Power Party (PPP) reportedly reached a consensus on the need for a universal handout of relief cash to all South Koreans.
Economy and Finance Minister Hong Nam-ki said during testimony at the National Assembly that he is against the idea of universal relief handouts. He made clear that his ministry will not follow a “political decision” regarding its fiscal operations.
In late June, the Moon administration proposed an extra budget of 33 trillion won ($28.7 billion) to finance another aid package after holding consultations and coordinating with the DPK. At the time, the government and ruling party agreed to provide handouts to people in the bottom 80 percent income bracket and small business owners. The supplementary budget plan, the second of its kind this year, is based on the ministry’s position that it should not exceed the excess tax revenue of 31.5 trillion won.
Local media reported Monday that DPK Chairman Song Young-gil and his PPP counterpart Lee Jun-seok had reached an agreement on the universal provision. The next day, however, the PPP backtracked. Spokeswoman Hwangbo Seung-hee said the two leaders agreed to “first use” the government’s proposed extra budget to expand the scope of aid recipients among small business owners who have suffered the most from the pandemic’s fallout.
She added that they agreed to review the need to expand the scope of the recipients to all people if there were leftover funds. In other words, the PPP has reaffirmed its stance on giving relief cash selectively to those bearing the brunt of the coronavirus. It has made clear its opposition to the DPK’s push to make the aid available to all members of society.
Lee, the new young leader of the PPP, seemed to have agreed on the matter with Song without carefully considering his party’s basic position. However, more worrisome is that the DPK has now decided to change the government’s plan in order to provide aid to all people. Song and his party cannot avoid criticism for trying to resort to populism ahead of the next presidential election set for March 9, 2022.
Against this backdrop, the finance ministry is right to oppose the DPK’s move. It is not the time to push for the universal provision of relief aid. Rather, the government and the DPK should consider providing more handouts to the poor, the self-employed, and small business operators who will be hit harder by the fourth wave of the pandemic. Politics should never be allowed to meddle in fiscal operations, especially when the country’s fiscal health has deteriorated due to multiple relief packages following the spread of COVID-19.
The Ministry of Economy and Finance is on a collision course with the ruling Democratic Party of Korea (DPK) over whether to provide COVID-19 relief aid to all citizens. The clash came Tuesday, one day after the leaders of the DPK and the main opposition People Power Party (PPP) reportedly reached a consensus on the need for a universal handout of relief cash to all South Koreans.
Economy and Finance Minister Hong Nam-ki said during testimony at the National Assembly that he is against the idea of universal relief handouts. He made clear that his ministry will not follow a “political decision” regarding its fiscal operations.
In late June, the Moon administration proposed an extra budget of 33 trillion won ($28.7 billion) to finance another aid package after holding consultations and coordinating with the DPK. At the time, the government and ruling party agreed to provide handouts to people in the bottom 80 percent income bracket and small business owners. The supplementary budget plan, the second of its kind this year, is based on the ministry’s position that it should not exceed the excess tax revenue of 31.5 trillion won.
Local media reported Monday that DPK Chairman Song Young-gil and his PPP counterpart Lee Jun-seok had reached an agreement on the universal provision. The next day, however, the PPP backtracked. Spokeswoman Hwangbo Seung-hee said the two leaders agreed to “first use” the government’s proposed extra budget to expand the scope of aid recipients among small business owners who have suffered the most from the pandemic’s fallout.
She added that they agreed to review the need to expand the scope of the recipients to all people if there were leftover funds. In other words, the PPP has reaffirmed its stance on giving relief cash selectively to those bearing the brunt of the coronavirus. It has made clear its opposition to the DPK’s push to make the aid available to all members of society.
Lee, the new young leader of the PPP, seemed to have agreed on the matter with Song without carefully considering his party’s basic position. However, more worrisome is that the DPK has now decided to change the government’s plan in order to provide aid to all people. Song and his party cannot avoid criticism for trying to resort to populism ahead of the next presidential election set for March 9, 2022.
Against this backdrop, the finance ministry is right to oppose the DPK’s move. It is not the time to push for the universal provision of relief aid. Rather, the government and the DPK should consider providing more handouts to the poor, the self-employed, and small business operators who will be hit harder by the fourth wave of the pandemic. Politics should never be allowed to meddle in fiscal operations, especially when the country’s fiscal health has deteriorated due to multiple relief packages following the spread of COVID-19.
Clash over relief aid
Source: Buhay Kapa PH
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