The Yoon Suk Yeol administration has demonstrated its commitment to restoring fiscal stability by proposing the smallest budget increase since 2005 for 2024. The total expenditure for the upcoming year amounts to 656.9 trillion won, an increase of 2.8 percent or 18.2 trillion won compared to the current year. With national debt nearing 1,100 trillion won and tax revenue forecasted to be insufficient, the government has taken the right step in tightening its belt.
Despite the effort to cut down on expenditure, the national debt is estimated to rise by 61 trillion won and the fiscal deficit to 92 trillion won in 2024. To maximize the effect of the budget, the government should focus on social welfare and public safety programs, while also pushing for labor, pension and education reforms to strengthen the economy. It is essential for the ruling party to reject requests from lawmakers for pork-barrel spending in their electorates.
The Yoon administration must remain firm in its decision to reject vote-buying budgets. Furthermore, additional efforts must be made to reduce the national debt and fiscal deficit. South Korea was able to overcome foreign exchange and financial crises by reviving the fiscal health of the government, and the government must strive to do the same.