War-Related Supplementary Budget to Stay at 26 Trillion Won Total as Ruling and Opposition Parties Engage in Heated Debate

[The Financial News] The ruling and opposition parties have reportedly agreed to maintain the government’s proposed 26 trillion won size for the supplementary budget aimed at responding to the surge in oil prices caused by the war in the Islamic Republic of Iran. However, negotiations over increases and cuts to individual programs are said to be extremely difficult.
PPP parliamentary leader Song Eon-seok said on the 10th that talks in the Subcommittee on the Supplementary Budget and the informal budget subcommittee of the Special Committee on Budget and Accounts (SCBA) at the National Assembly of the Republic of Korea continued until 4 a.m., and that a breakfast meeting was also held between the floor leadership of both parties and the SCBA secretaries. He stated, "I heard that the SCBA secretaries agreed not to increase total spending beyond the government proposal," adding, "Even if there are items to be increased, they will be offset within the scope of corresponding cuts."
The SCBA has been discussing increases and cuts to the supplementary budget through the subcommittee and the informal budget subcommittee from the previous day until early this morning, but has reportedly failed to reach a conclusion. The biggest sticking point is the plan to provide between 100,000 and 600,000 won in compensation for high oil prices to the bottom 70 percent of income earners. The PPP instead argues that 600,000 won in fuel subsidies should be paid to self-employed truck operators and similar groups.
Song said, "We have consistently argued that subsidies for the bottom 70 percent of all income earners are effectively a supplementary budget for the local elections and therefore should be revised," adding, "The Democratic Party of Korea says that people have suffered from higher oil prices and need subsidies, so further coordination is required."
He went on to say, "The DPK is not entirely negative about our demands to expand support for taxi and delivery drivers, truck operators, and for self-employed people who need delivery and packaging containers," explaining, "Since the government holds the authority to approve spending increases, the DPK will consult with the Lee Jae-myung administration."
The ruling and opposition parties plan to reach a conclusion through marathon negotiations during the day and then convene a plenary session of the National Assembly of the Republic of Korea to pass the supplementary budget bill. Due to the Ministry of Finance and Economy’s work to revise the budget tables, the vote is expected to take place late at night.
uknow@fnnews.com Kim Yoon-ho, Lee Haeram Reporter