Park warns of populist pledges

President Park Geun-hye speaks during the 2016 national fiscal strategy meeting at the presidential office in Seoul on April 22, 2016. The finance ministry said the government will maintain its expansionary policy for the next five years to bolster the country’s economy.

SEOUL, April 22 (Yonhap) — President Park Geun-hye warned against the dangers of populist campaign pledges Friday, stressing that maintaining fiscal soundness is a key factor that the government should take into account in setting its 2017 budget proposal.

“Laws containing populist ideas will burden not only the current generation but the next,” Park said chairing the national fiscal strategy meeting at the presidential office. She added excessive spending on welfare could have an impact on the country’s long-term fiscal health.

The chief executive also advocated special administrative rules like the “pay-go” system. The system makes clear that any additional outlays must be offset by spending cuts or revenue increases.

“The problem of maintaining long-term fiscal soundness is something that is agreed upon by the people,” the president pointed out.

At the meeting that sets government guidelines on spending, the Ministry of Strategy and Finance said it will maintain its expansionary fiscal policy mode for the next five years to prop up the economy. It, however, said every effort is going to be made to cut unnecessary outlays.

The ministry moreover has been moving to streamline the public sector to get rid of overlapping institutions. This can save money and lead to a more efficient fiscal spending structure.

The chief executive’s latest remarks apparently came after the political parties spearheaded different welfare pledges in the lead-up to the April 13 parliamentary elections.

Kim Chong-in, interim chairman of the main opposition Minjoo Party of Korea, stressed the importance of “productive welfare,” saying that the expanded welfare policy will eventually induce growth in related industries, such as health and medical services.

Kang Bong-kyun, a campaign chief of the ruling Saenuri Party, meanwhile, agreed with Kim on the need for the expansion of social welfare but warned against irresponsible policies that leaned toward populism. He argued such actions will not solve the country’s problems of slow growth or improve the country’s employment market.