South Korea's Budget Blitz: Opposition's Unexpected Slash Spurs Economic Debate

South Korea's opposition-led parliament passed a revised budget bill for 2025, significantly reducing the government's proposal and sparking constitutional tensions. The budget cut, driven by the Democratic Party, was enacted without consensus from the ruling party or government, raising concerns about its impact on fiscal policy and economic growth.

In a bold move, South Korea's opposition-led parliament has approved a 2025 budget significantly lower than the government's original proposal, intensifying political strife and economic concerns. The budget, passed with 183 votes to 94, slashes the proposed amount to 673.3 trillion won.

This unexpected fiscal decision, made without agreement from the ruling People Power Party or government ministries, marks a first in parliamentary history. The move has fueled fears of a policy vacuum, with the finance ministry's approval required for any future increases.

Critics, including economists, voice anxiety over the potential negative effects on South Korea's economy, which barely avoided a recession last quarter. With fiscal policy now constrained, experts predict a supplementary budget will be needed to stimulate growth.

(With inputs from agencies.)