Moon stresses aggressive fiscal spending for inclusive recovery

President Moon Jae-in on Tuesday rolled out his administration’s last budget plan worth 604.4 trillion won ($519 billion) that aims to cement the economic recovery, reduce deepening income disparity and prepare for post-pandemic policy initiatives.

The big spending plan for 2022, up 8.3 percent from this year’s 558 trillion won, is set to be submitted to the National Assembly on Friday for approval.

“At a time when the coronavirus crisis has greatly dampened the private sector, an aggressive fiscal policy is playing a key role in facilitating investment and consumption,” the president said in a Cabinet meeting held at Cheong Wa Dae.

He noted that the nation’s economy has been faring relatively well amid the pandemic largely due to its expansionary fiscal policy. He projected Asia’s fourth-largest economy to post more than 4 percent growth this year.

“The government has set out an expansionary budget plan for next year. We are still in an urgent need of an aggressive fiscal policy as we face a long way to go for a complete recovery and to respond to vast changes such as disruptions in global supply chains and digital and green transitions across industries,” he said.

Quarantine measures against COVID-19 and vaccines are expected to remain a top priority for the budget plan as more resources are being poured to improve medical infrastructure overall and secure more vaccines, including homegrown vaccines under development.

In order for an inclusive recovery, the president pledged more support for small businesses and young job seekers who are especially hit hard by the prolonged pandemic.

Regarding investment for the future, he said, the government will expand incentives for low-carbon green industries while continuing support for next growth engine businesses such as computer chips, biomedicines and batteries.

“We are facing a very important time for the nation in the midst of the world’s order of upheaval and great transformation. The fiscal role is more important than ever,” the president said. “All government offices should actively communicate and cooperate with the parliament for the budget plan’s approval.”

By Lee Ji-yoon (jylee@heraldcorp.com)