![President Lee Jae Myung speaks at a youth policy expert forum held at Cheong Wa Dae on Aug. 14. [Yonhap]](https://wimg.heraldcorp.com/news/cms/2026/08/26/rcv.YNA.20260814.PYH2026081412770001300_P1.jpg)
Cheong Wa Dae on Wednesday pushed back against criticism that a proposed future response fund — to be financed by surplus tax revenue — amounts to a "slush fund," saying the government created it "to invest where needed, in the right place at the right time, for responsible fiscal management."
A senior Cheong Wa Dae official made the remarks to reporters at the Chunchugwan that afternoon, saying the fund was conceived from a recognition that "spending more when taxes come in and not spending when they don't is not responsible fiscal management."
On the recent surge in tax revenue driven by a semiconductor boom, the official said that in the past, windfall revenues were "spent entirely through supplementary budgets." The official added that tax shortfalls of around 100 trillion won ($72.3 billion) emerged in 2023 and 2024, and that when deficits arose, the government cut spending, which slowed the economy and reduced tax intake — creating a vicious cycle.
The official also said the government is currently issuing about 110 trillion won in government bonds to cover its deficit, and that while some argue it would be better to use surplus tax revenue to reduce bond issuance, "that is not entirely wrong — but what do we do the year after next?" The official expressed doubt that strong tax revenue could be counted on two years from now.
The official went on to argue that expanding spending one year and pulling back the next does not constitute stable national debt management, citing President Lee Jae Myung's words — "if spending 10,000 won today can generate 1 million won tomorrow, then investing is the right call" — to underscore the rationale for establishing the fund.
sunpine@heraldcorp.com
