Parliament approves $4 bln supplementary budget

By Shin Hae-in
SEOUL, Sept. 18 (Yonhap) -- South Korea's National Assembly on Thursday approved a 4.57 trillion won (US$4 billion) supplementary budget to help alleviate the burden on the economy caused by high oil prices.
The supplementary budget, about 300 billion won short of the government's initial
proposal, will be mostly used to fill the deficits of state-owned energy firms to
prevent them from jacking up utility prices in the face of high fuel costs.
Some 600 billion won will be spent to support low-income households and the
elderly, in the form of college tuition fees and energy subsidies, the latter of
which will be handed out by December this year, according to the ruling party's
chief policy maker.
Among 267 attending lawmakers, 240 voted in favor of the plan.
"We hope the additional budget will play a role in thawing the hearts of people
who have been suffering from various economic difficulties," said Cho Yoon-sun,
spokeswoman for the ruling Grand National Party. "This will be our first step
towards helping people in urgent need."
The parliament missed the initial target date for the energy aid package last
week as parties battled over subsidies for Korea Electric Power Corp. and Korea
Gas Corp.
While the ruling party supported the government's initial proposal, opposition
parties demanded a cut in direct subsidies to state-run corporations, arguing
their losses should not be passed on to taxpayers.
Last week's vote failed to meet the quorum needed for approval as the largest
opposition Democratic Party, controlling 83 seats in the 299-member unicameral
house, boycotted the session alongside some ruling and minority party members.
Amid growing pressure for prompt passage, rival parties reached a last-minute
agreement Wednesday to slash 300 billion won from the original proposal and
increase direct expenses for the underprivileged.