Rep. Yoo Sungkull of the ruling Saenuri Party said the only option the country has in securing a supplemental budget is to issue national bonds.
During the interpellation of the government on economic policies at the National Assembly on June 22, the legislator said that one of the reasons for the government to issue national bonds to supplement the emergency budget was to augment economic growth, which has stalled due to the MERS outbreak. The government deficit amounted to 10.9 trillion won last year, with the government also incurring deficits in its budget in 2013 and 2012.
Rep. Yoo, who represents the Daegu East-A District in Daegu, went on to note that the issuance of national bonds would increase national debt and worsen the government’s treasury management. Last year, government budget deficits increased 55 percent due to a shortage in tax revenue. He recommended any additional money be tailor-made and should be weighed against the financial soundness of the treasury.
Before the current government took power, per capita income amounted to $25,000, and last year the number stood at $28,000. It is expected to hit round $30,000 this year. But the people have yet to experience the increase in wealth directly, with most of the key indicators remaining cool.
Economic growth by quarter has been confined to zero percent level, with the general price increase staying around 1 percent; household and national debts are rising fast; jobless rates for youths are climbing; export increase rates are rapidly dropping; and the trade surplus is worsening. Everything points to a tough situation for the nation, arousing fear that low-growth for the economy could continue to persist to the point of creating a crisis.
It’s been three years since the 19th National Assembly opened its first session, but nothing has been done to improve the livelihoods of the people, even thought both the government and parliament have worked hard towards that end. Times are tough, including the economy, politics, jobs and the outlook for future.
“The future is born from the present,” as the saying goes. “We should bear the pain with the people, sharing information on the current status of the economy, and the national livelihood together,” said Rep. Yoo. “Therefore, we should look into household finance and the national livelihood in detail and do our best to prepare for the future.”
Rep. Yoo hosted the Policy Seminar on Spurring the Service Industry at the National Assembly Hall on June 19 with some 100 experts attending.
In his speech, the legislator said that when the industrial structure develops to a high level, it will generate value-added industries and jobs, creating better quality jobs in the service industry that should be developed rapidly.
Rep. Yoo said the proposal for the basic law for service industry development has yet to pass the National Assembly. Parliament should first pass the legislative proposal on areas other than health and medicine if possible.
MERS made the health and medical sectors the key sectors of the service industry in Korea, which should be backed up with government policies to help the service industry grow.
The Federation of the Service Industries (FSI) is a non-profit organization set up in 2012 with its membership made up of various industries including medical, tourism, finance, knowledge service, construction, engineering, design, advertisement, culture and arts, shipping, broadcasting and communication, among others, with experts running the businesses and organizations that belong to the FSI.
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