The Korea Herald

피터빈트

Gov't mulling economy-boosting steps, including extra budget: finance minister

By KH디지털2

Published : June 22, 2015 - 13:11

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The government is considering a package of measures to prop up weak economic growth, including drawing up a supplementary budget, the top economic policy maker said Monday.

Speaking at a National Assembly interpellation session in Seoul, Choi Kyung-hwan said that the Middle East Respiratory Syndrome outbreak has exerted a considerable negative impact on the economy though the exact fallout has yet to be determined.

"There is a need to check various details and developments in regards to the supplementary budget, but a decision on the matter will be made soon," the finance minister said.

The finance ministry initially predicted Asia's fourth-largest economy to grow 3.8 percent in 2015, but even before the MERS scare, the target was revised down to the low 3 percent range.

Since the first case was confirmed in late May, MERS-related deaths reached 27 as of Monday, with 169 people diagnosed with the respiratory illness so far. There are 3,833 in isolation to prevent spread of the disease.

In regards to the government's tax earnings, Choi, who doubles as deputy prime minister for economic affairs, said the extent of a shortfall will not be as severe as 2014.

Last year, the government conceded it collected 10.9 trillion won ($9.9 billion) less than its spending.

Choi said also said the country's household debt is currently at a manageable level, but stressed policymakers are keeping close tabs on their growth.

"We are looking into household debt from various angles and will announce related measures in the near future," he said.

On questions raised by lawmakers on increasing corporate taxes, the minister said such a move will not be advisable at this time.

Choi said the economy as a whole is slowing down or entering a slow growth period that is hurting the socially disadvantaged, vowing to do his best to help such people. (Yonhap)