PM calls for prioritizing growth in fiscal policy

SEOUL, Aug. 24 (Yonhap) -- Prime Minister Han Seong-sook emphasized on Monday that fiscal policy should prioritize growth, stating that investment in growth-oriented areas is crucial for maintaining fiscal health. During a parliamentary budget and accounts committee meeting, Rep. Ahn Do-geol of the ruling Democratic Party inquired about the most effective policy to maintain fiscal health.

Han attributed the increase in tax revenues to higher company earnings. She believes that investing in growth-related sectors for the future is the most fundamental approach to maintaining overall fiscal health. Han also noted the contrast with the previous government's emphasis on fiscal austerity. While the previous administration pursued a contractionary fiscal policy, her administration is implementing an expansionary fiscal policy aimed at economic growth.

This represents a significant turning point in stimulating growth. She pointed out that when her administration took over, the country's growth was near zero percent. Now, most institutions have revised their growth forecasts upward after the change in administration.