Vice Minister of Planning, “It is impossible to predict when the future fund will be depleted...there may be additional tax revenue.”

Ministry of Planning refutes “conservative estimates” for pointing out that additional tax revenue will not be generated after 2029

(Seoul = Yonhap News) Reporter Park Soo-yoon = Vice Minister of Planning and Budget Cho Yong-beom said on the 11th regarding the future response fund worth 162 trillion won, which the government is newly establishing based on excess tax revenue, "At this point, it is impossible to predict when it will be depleted."

At the plenary session of the National Assembly's Budget and Settlement Special Committee on this day, Vice Minister Cho responded as follows to a question from Representative Song Jae-bong of the Democratic Party of Korea, who asked, "Because this fund is temporary, there are concerns about whether it is appropriate to allocate a long-term welfare budget."

Vice Minister Cho refuted the National Assembly Budget Office's prediction in next year's budget analysis report that 'no additional tax revenue to be used as a resource for the Future Response Fund will be generated after 2029.'

He said, “According to the Ministry of Planning, no additional tax revenue will be accumulated after 2029, and the tax revenue itself is currently structured very conservatively.”

He added, "To put this in reverse, there may or may not be additional tax revenue depending on how the economy grows. In terms of tax revenue, excess tax revenue may or may not occur depending on changes made during the year."

Furthermore, he said, “Because the amount of revenue will be appropriately controlled according to the mid-term financial operation plan, it is difficult to predict the time of depletion when the size of revenue and expenditure are basically uncertain.”

Vice Minister Cho also said, “Since we are investing a lot of budget in growth engines in the future response fund investment, I think that if the investment results are achieved and a virtuous financial cycle is achieved, the tax base will be expanded again.”

He emphasized, “We will make every policy effort to ensure the sustainability of the funds created.”

In response to Rep. Song's question about whether it was appropriate to allocate child allowance, a welfare budget, to the Future Response Fund, he replied, "Low birth rate and aging population are major social problems," and "I think it is an appropriate need to prepare for low birth rate."