It was learned on the 9th that, after the government began calling tax revenue collected above expectations from the semiconductor boom "additional revenue" rather than "excess revenue," it is pushing a plan to include in the special act on the future response fund a clause that would avoid the National Finance Act's constraints on expenditure targets and priority. Article 90 of the National Finance Act stipulates that when excess revenue arises, it must be used in sequence for local allocation tax settlement, repayment of public funds, and debt repayment. If this rule is followed, additional revenue cannot be sufficiently used for the future response fund for projects such as creating a semiconductor cluster.
The Ministry of Planning and Budget plans to introduce a bill to enact the "Special Act on the Establishment and Operation of the Future Response Fund" within this month. Earlier, on the 7th, presidential fiscal planning adviser Ryu Deok-hyeon said the government would push the special act, noting, "We will not tie up additional revenue solely for Government Bonds repayment and other uses, but will utilize it as resources for future investment."
To use additional revenue for projects such as creating a semiconductor cluster, Article 90 of the National Finance Act must be amended, or a clause providing an exception to it must be included in the special act.
The government is currently reviewing a plan to create an exception clause (special case) in the special act. Options under discussion include inserting the phrase "notwithstanding the National Finance Act" into the special act. If so, additional revenue could be put first into the future response fund, without first being used for local allocation tax settlement, repayment of public funds, and debt repayment.
A government official said, "Under the current provisions of the National Finance Act, it is impossible to use additional revenue entirely for other purposes such as funds." A legal professional said, "The National Finance Act is the law that sets the principles of national finances, and the government seems to have considered that adding an exception clause here does not fit the legal system."
The government will unveil a draft of the special act at the National Fiscal Strategy Meeting to be held next week and plans to reflect the future response fund in the budget starting next year.
There are concerns that this could shake the principles of national finances. Seok Byung-hun, a professor of economics at Ewha Womans University, said, "Once you start creating exceptions, there is concern that the government could create similar funds whenever needed in the future," adding, "It is not desirable in terms of the consistency, predictability, and credibility of fiscal policy."