Ruling party chief vows to fund election promises without raising taxes

The chief of the ruling Saenuri Party vowed Monday to help fulfill the government's election pledges without raising taxes, saying the most pressing task is to revive the slumping economy. Rep. Hwang Woo-yea made the remarks as he addressed the National Assembly in a speech marking the start of the current parliamentary session. The 100-day session officially kicked off early last month, but rival parties could not agreed on a schedule for parliamentary proceedings until weeks later due to a dispute over various contentious issues. "The Saenuri Party will do its best to fulfill (the administration's) election pledges as a ruling party with joint responsibility to carry them out," Hwang said. He especially stressed his party's determination to carry out the various welfare projects President Park Geun-hye promised ahead of last December's presidential election, saying it would do its best to finance them without raising taxes. His remarks came as Park and the ruling party have come under fire for scaling back their election promise to give a monthly allowance of 200,000 won (US$186) to all senior citizens aged 65 or above. Park has apologized for the revision, saying the current economic conditions could not sustain the program in its original form. The revision, which is subject to parliamentary approval, calls for providing a monthly allowance of between 100,000 won and 200,000 won to only the poorest 70 percent of the senior citizens. "The aim is to finetune our election pledge and expand (the program) in stages in consideration of the economic conditions, so it is not a cancellation or retreat of a pledge as some argue," Hwang said. Since taking office in February, Park has persistently been dogged by questions about whether she will be able to implement all of her campaign projects without tax hikes as promised. The pledged projects are expected to cost a total of 135 trillion won. Other ways to fund the projects would include eradicating corruption, bringing the shadow economy above ground, creating a fairer tax system and reducing government expenditure, Hwang said. "However, in the end, taxes can be collected only when businesses grow and individuals find jobs. It is more pressing than anything else to restore the life in our economy," he added. Hwang called for the swift passage of bills aimed at reviving the economy, including the Foreigner Investment Promotion Act.