The National Assembly Budget Office (Chief Cho Euysup) held Grand Debate on the 2023 Budget Bill on Tuesday, October 25, at 2 pm on the third floor of the National Assembly Budget Office building to seek the proper direction of the National Assembly’s examination of the government budget proposal.

Chief Cho Euysup said in his opening speech 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.”

Speaker Kim Jin-pyo shared his words of encouragement. He stressed that national finance should take a more active role to overcome the economic crisis and that the National Assembly’s role and authority should be strengthened when planning the budget so that the will of the public is reflected in the budget proposal and execution. He also requested the budget examination be carried out with enough dialogue, compromise, mediation, and arbitration, as it is the first budget bill examination since the ruling party changed.

Rep. Woo Won-shik, Chairman of the Special Committee on Budget and Accounts, delivered a congratulatory speech in which he highlighted four principles: considering people’s livelihoods as a top priority, responding to the climate crisis, reinforcing industrial competitiveness for future growth engine, and dealing with the low birth rate in an aging society. He added that the Special Committee would avoid unnecessary political disputes and carry out an in-depth review on issues, such as concerns over belt-tightening policy harming people’s livelihoods and an increase in household debt.

Prof. Won Yoon Hee at the University of Seoul moderated the debate. Kim Wan-seop, Deputy Minister for the Budget Office at the Ministry of Economy and Finance (MOEF), and Choi Byongkwun, Director General of the Budget Analysis Department at NABO, gave presentations. The panelists were Park Jeung, Lee Chulgyu, and Bae Jingyo, members of the Special Committee on Budget and Accounts; Jung Changsoo, Director of Narasallim Research Institute; and Oak Dong-suk, Professor at the Incheon National University.

Deputy Minister Kim delivered the first keynote speech, entitled “The Overview of the 2023 Budget Bill and Major Investment Directions.” He said that amid difficult fiscal situations, the government drew up a budget bill that focuses on core tasks such as strengthening fiscal soundness at the macro level and protecting vulnerable groups while increasing investment to prepare for the future at the micro level. An explanation of major investments of the 2023 Budget Bill and resource allocation by sector followed.

Director General Choi gave the second keynote address under the title of “Analysis of the 2023 Budget Bill and Its Major Characteristics.” He gave a general review of the budget proposal and explained the analysis of each policy. To maintain fiscal soundness and overcome the economic crisis, the budget for programs that are unlikely to be executed this year or do not show visible results needs to be reallotted to invigorating private investment, supporting vulnerable groups, and creating employment opportunities, he added.

The first panelist, Rep. Park Jeung of the Democratic Party of Korea, expressed concern about policy responses to the economic crisis, such as efforts to stabilize the economy, secure a social safety net for vulnerable groups, and boost consumption and investment, may not be given enough as the government shifts to a belt-tightening mode amid an economic recession. He promised to examine the budget bill under the principle of prioritizing the Korean people, their livelihoods, and the economy.

The second panelist, Rep. Lee Chulgyu of the People Power Party, valued the government’s efforts manifested in the 2023 budget proposal to shift the fiscal policy stance to sound financing by increasing fiscal sustainability and securing fiscal effectiveness through expenditure restructuring. He said that his examination on the budget proposal will be based on four major directions: strengthen the social safety net and protect vulnerable groups; stabilize prices and people’s livelihood; create jobs led by the private sector; and secure fiscal sustainability.

The third panelist, Rep. Bae Jingyo of the Justice Party, pointed out problems of the government’s economic policy stance: the sales of national properties amid the government’s pro-market/business attitude, a tax cut that only benefit the rich and conglomerates, budget reduction of rental housing, and under-allocated budget for health insurance enrollees. He added that he will faithfully examine the budget proposal to put the bill on the right track.

The fourth panelist, Director Jung Changsoo of Narasallim Research Institute, emphasized that we need to look into the details of the 2023 budget proposal rather than assessing its fiscal stance by simply looking at the increase/decrease of the budget size. He also said that he expects a fact-oriented budget examination based on accurate information provided by the government.

Lastly, Prof. Oak Dong-suk of Incheon National University mentioned that we need to be aware of the worsening national fiscal environment caused by fiscal management regarding deficit normal and aging population. He highlighted the need for fiscal rules management, a private sector-led economy, and an increase in intergenerational equity.