Seoul: President Lee Jae Myung on Wednesday raised the possibility of supporting an expansionary fiscal policy, calling for measures to improve the efficiency in government spending to boost economic growth. Lee voiced concerns over limited financial resources to push forward government initiatives during a meeting with financial officials and economic experts to discuss ways to improve efficiency in budget spending.
According to Yonhap News Agency, Lee expressed that while fiscal policy should act as a catalyst for growth, the government is facing decreasing tax revenues. The slowdown in economic growth has reduced revenue, placing national finances in a vulnerable position.
Lee emphasized the need to redirect wasteful spending toward priority areas that can stimulate the economy and improve livelihoods. He also urged participants to consider ways to increase government finances. His analogy of sowing seeds now to harvest grain later suggests a willingness to borrow funds now in anticipation of future economic returns.
His remarks signal support for an expansionary fiscal stance, where the government borrows money to increase spending. This approach is based on the expectation that heightened economic activity will eventually lead to increased tax revenues.