On the 26th, it was learned that the uses of the "future response fund," which the government plans to build to at least 100 trillion won using excess tax revenue, will be delegated to a presidential decree. Until now, the Ministry of Planning and Budget had said it would focus the fund's investments on youth, growth engines, regions, and talent. But the fund bill also includes a clause saying it can be used "in other cases prescribed by presidential decree." Concerns are rising that it could become an "all-purpose account" that the Blue House and the government can spend anytime, anywhere.
The Ministry of Planning and Budget on the 24th preannounced legislation for the "Act on the Establishment and Operation of the Future Response Fund." It says the fund's resources will come from excess tax revenue that exceeds the average national tax growth rate over the past 10 years, among other sources. The fund's accounts are set as five: ▲ general ▲ youth ▲ growth engine ▲ regional ▲ education and talent accounts.
The bill also outlines where the money in each account can be used. For example, the youth account can be used for youth support projects such as ▲ jobs and startups ▲ housing and stability ▲ asset building ▲ marriage and childbirth ▲ living and culture. However, there is a proviso that it can also be used "for other youth support projects prescribed by presidential decree."
This kind of expansion of uses is the same for other accounts. The growth engine account can be used not only for growth engine support projects such as ▲ artificial intelligence development ▲ nurturing national strategic technologies ▲ research and development (R&D), but also "for other growth engine support projects prescribed by presidential decree."
In this regard, some note that because the very uses of the future response fund are abstract and broad, delegating them to a presidential decree effectively allows unlimited expansion of uses. Unlike laws that are enacted and amended by the National Assembly, presidential decrees can be easily enacted and amended by the government.
On top of that, the government is pushing to revise the National Finance Act to allow changing spending plans for 30% of the future response fund without National Assembly review. This ratio is higher than other project-type funds (20%). If that happens, the amount that could be used for "pork-barrel giveaways" for political purposes could grow.
A university professor (economics) who requested anonymity said, "Under the National Finance Act, for funds, operating plans can be changed without National Assembly review for up to 20%–30% of major expenditure items," and added, "Not specifying the uses in law could be seen as an attempt to bypass National Assembly oversight twice over."