PM calls for prioritizing growth in fiscal policy

Prime Minister Han Seong-sook emphasized on Monday that the government should prioritize growth in fiscal policy, asserting that investment in areas that promote economic expansion is crucial for maintaining fiscal stability. During a parliamentary budget and accounts committee meeting, Rep. Ahn Do-geol of the ruling Democratic Party of Korea inquired about the optimal policy to preserve fiscal health.

Han attributed the nation's recent success in generating tax revenues to the increased earnings of businesses. She firmly believes that investing in growth-oriented sectors represents the most essential approach to sustaining overall fiscal health. Notably, Han contrasted the current administration's emphasis on expansionary fiscal policy with the previous government's approach of fiscal austerity.

The previous administration adopted a highly contractionary fiscal policy, whereas the present government is pursuing an expansionary strategy aimed at fostering economic growth, she explained. This represents a significant turning point in stimulating growth, according to Han.

She noted that the country's growth rate was close to zero percent when the current administration took office.