The timely passage of the 2015 national budget can help push up growth in the new year by creating more jobs for young people and by supporting the underprivileged, South Korea’s top economic policymaker said Friday.
Chairing the fiscal strategy policy meeting in Seoul, Choi Kyung-hwan said the 387 trillion won ($333 billion) budget plan being reviewed by the National Assembly outlines comprehensive measures to help young people find work, support next generation growth industries, and assist small businesses owners and the underprivileged.
The finance ministry claimed that the passage can push up the country’s gross domestic product by 0.7 percentage point.
The government maintains next year’s GDP growth will reach 3.3 percent, up from 3.1 percent forecast for this year.
“The budget can breathe new life into the economy so it is imperative that it is passed by lawmakers,” the official, who doubles as deputy prime minister for economic affairs, said.
He emphasized that once the budget is passed, the government will execute its spending plans as soon as possible for the best possible effect. By law the budget must be approved by Dec. 2, although lawmakers have usually disregarded the deadline.
Choi said besides the budget, follow up measures related to revamping labor rules, various economic stimulus programs and ratification of the free trade agreement between South Korea and China are matters that need to be resolved as soon as possible.
He said the passage of reform measures and FTAs can keep alive the growth momentum that has started to pick up pace in the third quarter.
The policymaker then said that every effort will be made to maintain growth in the fourth quarter, while at the same time keeping close tabs on external downside risks. (Yonhap)
