The budget for the first time in history...Concerns over loss of economic policy 'motor' next year

Choi Sang-mok "I'm sorry for the budget cut...Quick execution"
Meeting with U.S. Treasury Secretary…"Our economic system is strong"
First-ever budget for reduction...Fiscal Management Disruptions Inevitable Next Year

[Anchor]
As the first-ever reduction budget passed the National Assembly, there are concerns that next year's economic policies, including fiscal management, will be disrupted.

As the possibility of creating an extra budget increases, changes are expected to be inevitable in the "sound fiscal" stance.

Reporter Oh In-seok on the report.

[Reporter]
Deputy Prime Minister for Economy Choi Sang-mok said he felt sorry for the opposition party alone when the reduced budget passed the National Assembly, but said he would implement the budget quickly.

[Choi Sang-mok / Deputy Prime Minister and Minister of Strategy and Finance: The budget for the reduction was passed by the National Assembly today after the ruling and opposition parties failed to reach an agreement. It's a pity. We will make every effort to prepare for budget execution so that we can respond to the stability of people's livelihoods and then to the expansion of external uncertainties.]

While presiding over an emergency economic meeting for a week, he stressed that the nation's economic system, including a video interview with U.S. Treasury Secretary Janet Yellen, will remain strong and maintain a consistent and systematic economic policy stance centered on the Deputy Prime Minister for Economic Affairs.

However, next year's fiscal management is expected to be disrupted due to the first-ever reduction budget.

As reserves are cut by 2.4 trillion won, it becomes difficult to respond quickly to unexpected disasters, disasters, and infectious diseases.

With uncertainties growing ahead of the launch of the second Trump administration, spending on preserving the shortage of won due to exchange rate fluctuations has also become difficult.

The budget for the East Sea deep-sea gas field development project, which was planned to focus on next year, was cut by 98%, and was directly hit.

Establishing economic policy directions next year, which are closely related to the budget, is also expected to be difficult.

The government plans to announce it at the end of the year, but there are concerns that if the impeachment process is prolonged, it could be a policy that is in a hurry to respond to risks.Major bills also lost momentum, including

, a reform of the inheritance tax system, which includes a cut in the maximum tax rate, and a revision to the Special Taxation Act, which includes raising the payment limit for personal comprehensive asset management accounts.

In the meantime, sluggish domestic demand is deepening, raising the possibility of setting up an extra budget next year to stimulate the economy.

Considering the large tax deficit for the second consecutive year, it is expected that the current government's "sound fiscal" stance will inevitably change, including the issuance of deficit-financing bonds to create an extra budget.

Analysts say it is not easy to oppose the extra budget at a time when the Ministry of Economy and Finance, the budget and financial authorities, has lost its momentum due to the impeachment process.

This is YTN Oh In-seok.

Edit
video: Lee Eunkyung