Finance minister rules out 2nd extra budget

SEOUL, April 22 (Yonhap) -- The government will not consider another extra budget
for this year as it aims to tackle the current economic crisis with a recently
submitted additional spending plan, the largest ever, the top economic
policymaker said Wednesday.
The finance ministry crafted a 28.9 trillion won extra (US$21.4 billion) budget
late last month, equivalent to 3 percent of the nation's gross domestic product.
It is now under deliberation in parliament.
"We are not considering drawing up another extra budget at this moment," Finance
Minister Yoon Jeung-hyun told reporters. "The government will try to tackle the
economic crisis with the first one."
Upon unveiling the extra spending plan last month, Yoon had said the government
was open to yet another budget for this year aimed at bolstering the slumping
economy.
South Korea is facing its worst slowdown in more than a decade amid the
protracted global recession.
According to the nation's central bank, Asia's fourth-largest economy is expected
to shrink 2.4 percent this year, its first minus growth since the 1997-98
financial crisis.
Yoon said that the economy is showing some positive signs, citing growing
industrial output and stabilizing financial markets. But he also said the
nation's labor market is still in a serious slump, while overseas economic
conditions remain tough for the export-driven economy.
"When you look at the downside, there are still many negatives. In our economy,
negatives now coexist along with positives," Yoon said, adding that groundless
pessimism and excessive pessimism should both be avoided.
His remarks come as opinions are divided over how quickly the economy will
recover from the protracted slowdown, with some predicting a quick rebound and
others saying more time is needed to achieve a turnaround.
kokobj@yna.co.kr
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