The Presidential Office, which has formalized the creation of a "Future Response Fund" using additional tax revenue, plans to seek a path forward through the enactment of a special law. The outline of the Future Response Fund is expected to be announced together when next year's budget is compiled at the end of August.
Ryu Duk-hyun, the Presidential Office's fiscal planning adviser, appeared at the Presidential Office Open Studio on Monday and said, "It is still unclear how much more (tax revenue) will come in this year, but we think slightly more will come in additionally than when the supplementary budget was (compiled) earlier this year." He forecast that "a considerable amount of additional tax revenue is expected to come in through next year and the year after."
Rather than excess tax revenue, which refers to the surplus over a single fiscal year's revenue budget forecast, the Presidential Office anticipated that additional tax revenue would increase over several years due to the semiconductor boom. It decided to establish the Future Response Fund through additional tax revenue in preparation for the long-term revenue trend. The purpose is to prepare in advance future funds to raise growth potential, including the recent 1,600 trillion won worth of three mega projects, balanced regional development, and youth policies.
Regarding the plan to establish the Future Response Fund, Ryu said, "I think the fund will need to be established in the form of a special law," adding, "We naturally plan to consult and communicate well with the National Assembly to ensure the procedures are complete." He continued, "Through the National Fiscal Strategy Meeting a week from now, we will inform the public to some extent, and we will prepare together with the government to comply with the various legal procedures the government is preparing, and to communicate sufficiently and build consensus through academia, the media, and various public institutions."
He stressed, "Because this is a fund made up of precious taxes paid by companies and the public, the use of the fund and the compilation process must naturally go through the National Assembly, which represents the people." He added, "It is not something that can be done unilaterally at all. We will prepare well so that no misunderstanding arises during the (fund creation) process, and prepare so that people do not have to worry."
Regarding the timing when the specific outline of the Future Response Fund will emerge, he added, "The government is required to submit next year's national budget at the end of August," and "In the near term, since the specific content must be included during the compilation of the government budget, our goal is to prepare well and carry it out quickly within a short period of time."
