The South Korean government and the ruling Senuri Party on Friday agreed to campaign for a supplementary budget for next year as early as February to stimulate the depressed economy. A supplementary budget demands approval from opposition-majority legislative, which is currently engrossed with the power abuse scandal involving the president that it had impeached.

“We strongly requested the government consider creating the supplementary budget by February next year, given the gloomy economic outlook for next year and the importance of economic actions,” said Lee Hyun-jae, the policy chief of Saenuri after a government-ruling party meeting on Friday.

Despite the extra budget of 11 trillion won ($9.1 billion) in the second half this year, the economy is estimated to have made little growth in the fourth quarter. Many have been proposing preemptive fiscal actions to prevent the economy sagging further. But others advise the government to leave major fiscal action to the incoming administration as the country would have to elect a new president if the Constitution Court endorses the legislative impeachment on President Park Geun-hye.

Yoo Il-ho, deputy prime minister for economy and financial minister on Thursday had said that the government would consider creating a supplementary budget in the second half, depending on the pace of growth in the first quarter.

The government and ruling party agreed to use more than 30 percent of the 400.7 trillion won budgetary spending earmarked for 2017 during the first three months and more than 60 percent of the 2017 budget in the first half for economic stimulation. Extra budget should be ready to run second-half economy.

The government this year expedited 30 percent of the spending allocated for the first quarter and 50 percent in the first half.

They also agreed on additional 2.3 trillion won spending to support low-income households and extra 12 trillion financial aids for small business owners through state-run financial institutions. They also plan to encourage commercial banks to provide supports worth 13.4 trillion won.

By Cho Si-young and Ahn Byung-joon

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