2009 budget likely to pass deadline: legislators

SEOUL, Nov. 16 (Yonhap) -- Senior legislators said Sunday it is unlikely the 2009
state budget will pass before its deadline due to delayed schedules in parliament
and ongoing partisan debates.
The finance ministry submitted a 283.8-trillion-won budget bill for next year to
the National Assembly earlier this month, up from 256.2 trillion won set for this
past year.
The legislature is required to approve the budget by Dec. 2, as stipulated by the
Constitution, in order to pass it 30 days prior to the start of the new fiscal
year. But the assembly's budget committee has already put off the deadline to
Dec. 8, said Rep. Lee Han-gu, committee chair of the ruling Grand National Party.

"According to the legislative schedules, it is impossible to pass the budget by
Dec. 2," Lee said over the telephone. "We believe it's best if we can pass it by
Dec. 8th."
Lee cited the belated formation of the assembly's regular session. Since the
April parliamentary elections, the assembly remained closed until September as
opposition lawmakers boycotted it as part of nationwide protests against a
controversial U.S. beef import agreement.
Partisan debates are expected to be particularly fierce this year over the first
budget plan proposed by the Lee Myung-bak government. Its pro-business proposals
will likely face challenges from the liberal opposition.
Lee's tax cut plan includes a controversial real estate tax which the
Constitutional Court recently ordered revised. The government seeks to raise the
minimum tax base for property owners to homes worth more than 900 million won
(US$644,000) from the current 600 million won and lower the tax rate to 0.5-1
percent from the current 1-3 percent. The major opposition Democratic Party
blasts the move as "tax cuts for the rich."
Other controversial bills pushed by the ruling party include a deregulation bill
to allow conglomerates to own banks and a bill to tighten punishments for cyber
defamation.
"Chances are the budget bill deliberation will likely continue until Dec. 31," a
key Democratic Party member said.
It is rare that the legislature passes a budget bill within the constitutional
deadline. Since 1990, the deadline was observed only six times -- three of which
were in 1992, 1997 and 2002, when the parties had a tacit agreement that their
campaign expenses should be promptly paid in those presidential election years.
In 2004, the parties wrangled until the last minute to approve the budget at
midnight on Dec. 31.
hkim@yna.co.kr
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