(EDITORIAL from Korea JoongAng Daily on Nov. 2)

National Assembly must cut wasteful spending from record budget

Lawmakers must curb discretionary spending and debt risks as they review the government's 820.9 trillion won (US$615 billion) budget proposal.

The National Assembly begins full-scale deliberations on next year's budget with President Lee Jae Myung's address outlining the government's spending plans. The proposed 2027 budget represents an unprecedented fiscal expansion, totaling a record 820.9 trillion won ($615 billion), up 12.8 percent from this year's original budget, the largest increase on record.

The government argues that the spending is necessary to support livelihoods and secure future growth engines. But expansionary fiscal policy could conflict with tight monetary policy, fuel inflation and intensify upward pressure on interest rates. Rising prices and borrowing costs could ultimately hurt the vulnerable households the government promises to protect.

The proposed 162 trillion won Future Response Fund has drawn criticism for granting excessive discretion to the administration. Up to 30 percent of the spending allocation can be changed without parliamentary approval, raising concerns that it could become a discretionary fund for the ruling administration.

Critics also question why projects already eligible for ordinary budget financing have been transferred into the fund. These include recurring programs requiring annual expenditures, such as 2.9 trillion won in basic child allowances and 1.1 trillion won in basic income payments for rural communities.

Whatever the other controversies, financing permanent or multiyear commitments with temporary tax windfalls is fiscally irresponsible. It risks imposing lasting burdens on public finances.

The National Assembly should clearly redefine the fund's purposes and eligible programs. Otherwise, the opposition's proposal deserves consideration: Leave 104 trillion won in unallocated fund resources as excess tax revenue and use it to repay government debt through procedures prescribed by the National Finance Act.

With national debt projected to increase by another 321 trillion won over four years, reaching approximately 1.7 quadrillion won, fiscal caution is particularly important.

Parliamentary institutions historically emerged partly to prevent monarchs from arbitrarily imposing taxes and spending public money. Lawmakers therefore have a fundamental responsibility to scrutinize government finances and prevent waste.

Unfortunately, political practice often falls short of that principle. Even opposition parties that initially demand sweeping budget cuts have eventually traded constituency projects under the banner of political compromise.

This year's budget deliberations must not repeat that pattern. The ruling party should resist using public spending to court voters, while lawmakers across party lines must refrain from exchanging budget favors for their districts.

If political generosity and constituency bargaining again prevail over fiscal discipline, this National Assembly will be remembered for passing enormous financial burdens onto future generations.
(END)