On October 8, Park Hong-geun, Minister of the Ministry of Strategy and Finance, explained the need for an active fiscal policy and the direction of the Future Response Fund during a National Assembly audit by the Finance and Economy Committee. The ruling party assessed that active fiscal policy leads to growth, increased tax revenue, and improved fiscal balance, while the opposition pointed out that the surplus funds of over 100 trillion won in the Future Response Fund should be used to further reduce national debt.
Democratic Party lawmaker Ahn Do-geol mentioned the trends in economic growth and fiscal balance improvement, questioning the government's fiscal management direction and the purpose of introducing the Future Response Fund. Ahn stated, "Active fiscal policy is leading to growth, an expanded tax base, and improved fiscal balance," and emphasized the need for the government to explain this trend to international credit rating agencies and the International Monetary Fund (IMF).
Minister Park responded, "We must assess the correctness of policies based on statistics and objective indicators," explaining that the 2030 national debt forecast in the medium-term fiscal plan established this year is 208 trillion won lower than last year's plan. He added, "The forecast for deficit-related debt has also decreased by 193 trillion won under the same criteria," and stressed that when evaluating fiscal soundness, it is essential to consider not only the current national debt level but also how the medium-term fiscal outlook has changed.
The opposition raised concerns about the allocation of resources in the Future Response Fund. As of 2027, the Future Response Fund is projected to be 162.3 trillion won, with 45.4 trillion won allocated for projects related to youth, growth engines, local development, education, and talent, while 104.4 trillion won will be managed as surplus funds. Additionally, 12.5 trillion won will be used to reduce new national debt issuance.
People Power Party lawmaker Lee Jong-wook criticized the government's expansionary fiscal stance, asking, "If there is an excess tax revenue, shouldn't we reduce the national debt that was previously planned to be issued?" He questioned why only 12.5 trillion won was allocated for reducing new national debt issuance while leaving over 100 trillion won in surplus funds in the Future Response Fund.
Minister Park explained, "When utilizing the resources of the Future Response Fund, we must consider not only the scale of national debt issuance but also the national debt ratio, the sustainability of the fund, and the scale of investment," adding that the 12.5 trillion won was determined after comprehensively considering these factors.
* This article has been translated by AI.
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