Seoul: The chief policymaker of the ruling Democratic Party (DP) has advocated for an extra budget that includes a cash handout program to stimulate private consumption. This proposal comes in the wake of President Lee Jae-myung's directive to expedite the creation of an extra budget to support economic recovery.
According to Yonhap News Agency, Rep. Jin Sung-joon of the DP suggested through a Facebook post that integrating a cash handout program into the upcoming budget would be beneficial. The plan involves distributing money in the form of coupons for use within local communities. Jin emphasized that the initiative aims to enhance overall spending, thereby revitalizing the economy.
Jin underlined that for the relief fund to be effective, it should be distributed to all citizens as local currency vouchers with a specified expiration date. He also acknowledged that if fiscal limitations arise, the program might need to focus on providing selective payments to specific groups.
In February, the DP had proposed an extra budget plan that included cash vouchers worth 250,000 won (US$183) per person for the entire nation, with an additional 100,000 won for individuals in the low-income bracket.