Ministry of Planning and Budget Admits Interagency Consultations on Future Fund Were Insufficient, Says They Are “Nearly Complete”

[Financial News] The Ministry of Planning and Budget acknowledged on the 12th that detailed interagency consultations were insufficient during the process of enacting the Future Fund Act.
Park Soo-young of the People Power Party criticized the Ministry of Planning and Budget during the Special Committee on Budget and Accounts’ review of budgets for non-economic ministries, saying it had pursued the bill without adequate consultation with the Ministry of Finance and Economy. In particular, he pointed out that the legislative notice period for the Future Fund Act was only four days, compared with the usual period of around 40 days. He also took issue with the omission of a vice-minister-level meeting.
“The 10 opinions from the Ministry of Finance and Economy were not reflected in the Future Fund Act either,” Park said, adding, “A bill agreed upon in prior consultations should be pursued.”
Jo Yong-beom, vice minister of the Ministry of Planning and Budget, acknowledged the criticism, saying, “Because the legislative notice period was short, we were unable to consult on the specific and technical aspects in advance.” He added, “Consultations are now nearly complete, and we will report on the agreed-upon proposal during the subcommittee’s review of the Future Fund Act.”
Meanwhile, Park also raised concerns about the Future Fund’s operating returns. He cited estimates that the government’s annual interest rate on its borrowing is around 4.1%, while the fund’s expected return is only 3.85%. He expressed concern that this could result in a negative spread of about 500 billion won each year.
Park therefore strongly urged that the increase in tax revenue be used first to repay the national debt rather than managed through a fund.
  

[email protected] Kim Hyeong-gu Reporter