Blue House: "Extra budget possible without issuing new government bonds... We will inject sufficient fiscal resources where needed"

The Financial News reported that Senior Presidential Secretary for Political Affairs Hong Ik-pyo said on the 13th that, regarding the preparation of a supplementary budget (extra budget) to respond to the shock from the situation in the Middle East, "Nothing has been finalized yet in terms of its size. The fiscal authorities are currently assessing the need for an extra budget."
Appearing on the KBS 1TV current affairs program "Sasageongeon" the same day, Hong noted, "There are reports saying the fiscal size of the extra budget will be 10 trillion won or 20 trillion won, but those are getting ahead of themselves," reiterating that no decision has been made.
Hong added, "We are actively assessing the need for an extra budget, and the president has instructed the relevant ministries to move quickly. So the size will ultimately be decided later. Our assessment is that, given the current revenue situation, there will be no need to issue additional government bonds this time," adding, "The government intends to deploy its fiscal capacity fully and decisively in the areas where it is needed."
Earlier, President Lee Jae-myung said at a Senior Presidential Aides Meeting he chaired on the 12th, "In times of crisis, it is essential to swiftly inject fiscal resources so that efforts to stabilize people’s livelihoods and restore the economy do not fall behind," and added, "In the end, we cannot avoid drawing up an extra budget, and I ask that the process of preparing it be carried out as quickly as possible." President Lee also stressed, "We must never waste the critical window for cushioning the impact on people’s livelihoods and the real economy."
Regarding the "oil price cap system" that the government began implementing on this day, Hong said, "I expect that within two to three days at the latest, supplies will be provided at stable prices based on the price cap system."
On a possible cut to the fuel tax, he explained, "We are reviewing a fuel tax cut, but for now we need to think a bit more," and continued, "Rather than cutting the fuel tax first, what we should prioritize is providing support through the Energy Voucher Program to distribution and logistics companies that are being hit directly by the rise in diesel prices."
Hong also commented on the announcement by the administration of U.S. President Donald Trump that it would investigate alleged unfair trade practices by 15 countries, including South Korea, and the European Union (EU) under Section 301 of the Trade Act of 1974. He said, "In fact, this was a development we had anticipated to some extent," and added, "Our trade and export authorities are preparing meticulously and doing their utmost to ensure that our companies and citizens do not suffer any damage."
cjk@fnnews.com Reporter Choi Jong-geun Reporter