On the second day of the National Assembly's Budget Special Committee policy inquiry, lawmakers clashed over the appropriateness of the Future Response Fund. The People Power Party argued for a complete cut of the fund, suggesting that the related resources should be reverted to the existing budget while advocating for a reduction in national debt through decreased bond issuance and repayments. In contrast, the ruling Democratic Party countered that cutting investments for the future could shift the burden onto future generations.
Representative Song Eon-seok, a budget expert from the People Power Party, criticized the fund during the committee meeting, stating, "Everything that can be done with the Future Response Fund can also be done with the Public Fund Management Fund. Critically, it can only be seen as an attempt to create a slush fund." He expressed concerns about the scale of fiscal spending, noting, "In just one year, we have surpassed 800 trillion won again. There are many worries about whether we are depleting our finances too quickly."
The People Power Party's policy committee also released a statement asserting that the 162.3 trillion won allocated for the Future Response Fund in next year's budget should be completely withdrawn. They proposed reverting the 45.4 trillion won earmarked for the fund back to general and special accounts and utilizing the 104.4 trillion won set aside as surplus for canceling new deficit bond issuances and reducing national debt issuance.
The party claimed that cutting the Future Response Fund entirely could reduce national debt by 116.9 trillion won, estimating annual interest savings of about 3 trillion won.
On the other hand, Democratic Party lawmaker Lee Yeon-hee questioned, "The two ways to enhance the nation's fiscal soundness are to reduce debt and to increase the capacity to manage debt through economic growth. Isn't what our government aims to do with the Future Response Fund to achieve both?" She emphasized that future generations will inherit not only debt but also economic foundations such as advanced industries and safety nets, arguing that failing to invest in growth would burden them.
Democratic Party spokesperson Jeon Eun-soo also spoke with reporters before the plenary session, explaining, "The Future Response Fund is a preparation and investment for future growth, proper management of national debt, and a financial safety net for when fiscal resources decrease in the future."
As the ruling and opposition parties remain at odds over next year's budget, the committee's chief expert raised concerns in a review report that the Future Response Fund could undermine the National Assembly's budget review authority. The report pointed out, "If domestic tax revenues are underestimated, the Future Response Fund's income could increase without going through the National Assembly's budget review, allowing for changes in operational plans to utilize it for expenditures."
Following the policy inquiry, the Budget Committee is scheduled to conduct reviews by economic and non-economic ministries from November 9 to 12. The legal deadline for processing next year's budget is December 2.
* This article has been translated by AI.
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