South Korean President Moon Jae-in said on Monday that the government has led a fast and strong economic recovery through unprecedented expansionary fiscal policy and, as a result, has become one of the fastest advanced economies to recover to pre-pandemic levels. Meanwhile, the main opposition People Power Party (PPP) disparaged the speech, saying it was “full of self-praise and piggybacking on others’ credit.”
In a speech on next year’s budget delivered at the National Assembly on Monday, President Moon said next year’s budget will be used for a complete return to normal life and public finance will play a crucial again next year. “In the face of the COVID-19 crisis, our expansionary fiscal policies led the recovery in economy and employment, and an increase in tax revenue, creating a virtuous cycle that helped to enhance fiscal sustainability,” Moon said. The national budget, which was about 400 trillion won in the first year of President Moon’s tenure in 2017, has been set at a record high of 604.4 trillion won next year.
President Moon, however, did not address concrete solutions to real estate issues by only saying, “It still remains the biggest problem in people’s lives and is a subject of reform.” In regard of excess tax revenue from an increase in home prices, President Moon said errors in the forecast of tax revenue can be subject to criticism, but it also shows a stronger-than-expected economic recovery, which is good for the overall national economy.
“It is the height of irresponsibility to take all the credit and shift the blame on the next administration and the future generations,” PPP senior spokesperson Heo Eun-ah said in a comment.