Seoul: The ruling Democratic Party (DP) and the main opposition People Power Party (PPP) commenced their review of an extra budget plan at parliamentary committees, facing persistent disagreements over a proposed cash handout scheme. The budget proposal, amounting to 20.2 trillion won (US$14.7 billion), marks the second this year and the first since President Lee Jae Myung assumed office earlier in the month, receiving Cabinet approval last week.
According to Yonhap News Agency, six standing committees, including the Land, Infrastructure and Transport Committee and the National Defense Committee, convened plenary meetings to scrutinize the proposed budget. The DP has advocated for the inclusion of a cash handout scheme aimed at bolstering private consumption, while the PPP has opposed it, labeling it as a populist measure.
The DP aims to secure the passage of the extra budget bill by July 4, ahead of the conclusion of the current special parliamentary session. DP spokesperson Hwang Jung-a emphasized the urgency of the situation during a press briefing, urging for rapid approval to capitalize on the recovering consumer sentiment.
Conversely, a senior PPP official expressed the party's intent to contest the plan to issue cash in the form of "consumption coupons." The government intends to allocate 10.3 trillion won to distribute these coupons, with amounts ranging from 150,000 won to 500,000 won per person, based on income levels.