Seoul: President Lee Jae Myung on Tuesday instructed officials to pursue a proactive fiscal policy in the second half of the year and beyond to help improve people's livelihoods. Lee delivered the instruction at a Cabinet meeting, insisting that now is the time to nurture the nation's potential through investment and that greater investment will yield bigger returns.

According to Yonhap News Agency, President Lee emphasized the importance of fiscal policy as a means to facilitate a significant advancement in the national economy. He stated that the economic growth plan for the second half of the year and the drafting of next year's budget should align with this principle. Citing research, Lee highlighted that "proactive fiscal management" is beneficial for improving people's livelihoods and that bold fiscal spending can invigorate the broader economy.

The president pointed out that South Korea's national debt structure is more robust compared to other countries, with the "real debt ratio" at approximately 10 percent of the gross domestic product. While advocating for strategic borrowing, he clarified that it should not be a frequent pursuit and emphasized the government's role in stimulating the economy through investment.

Lee also called for the elimination of "low-efficiency projects" in the forthcoming budget, underscoring the need to maximize efficiency in government spending. During the same meeting, Budget Minister Park Hong-keun echoed this sentiment, advocating for "intensive restructuring" of government spending to ensure that the administration's policy projects are effectively incorporated into budget allocations.