The government plans to allocate more than 800 trillion won for total expenditures next year. A new "future response fund" will also be established to utilize a significant increase in tax revenue for securing future growth engines, including artificial intelligence (AI) and industrial transformation.
Park Hong-keun, Minister of the Office for Government Policy Coordination, reported on the "2027 budget proposal and medium-term fiscal management direction" during a national fiscal strategy meeting chaired by President Lee Jae-myung at the Blue House on July 13.
Minister Park stated, "National tax revenue for 2027 is expected to reach at least 500 trillion won, significantly exceeding the initial forecast of 412 trillion won, marking the highest level ever."
He added, "Next year's total expenditures will be structured at over 800 trillion won, which is more than a 10% increase from this year's original budget of 727.9 trillion won."
Minister Park emphasized the need for bold fiscal investment to respond to structural changes such as AI and industrial transformation. He also unveiled plans for the future response fund, which aims to leverage the substantial increase in tax revenue for future investments.
He explained, "The future response fund will serve as a new fiscal management platform that transcends the limitations of annual budgets and will provide a strategic investment foundation to support a rebound in potential growth rates. We will accumulate tax revenue increases that exceed long-term trends in the fund to secure stable investment resources."
The government plans to use the future response fund to mitigate tax revenue volatility while focusing investments in four key areas: the youth generation, future growth engines, local regions, and talent development.
Park Hong-keun, Minister of the Office for Government Policy Coordination, reported on the "2027 budget proposal and medium-term fiscal management direction" during a national fiscal strategy meeting chaired by President Lee Jae-myung at the Blue House on July 13.
Minister Park stated, "National tax revenue for 2027 is expected to reach at least 500 trillion won, significantly exceeding the initial forecast of 412 trillion won, marking the highest level ever."
He added, "Next year's total expenditures will be structured at over 800 trillion won, which is more than a 10% increase from this year's original budget of 727.9 trillion won."
Minister Park emphasized the need for bold fiscal investment to respond to structural changes such as AI and industrial transformation. He also unveiled plans for the future response fund, which aims to leverage the substantial increase in tax revenue for future investments.
He explained, "The future response fund will serve as a new fiscal management platform that transcends the limitations of annual budgets and will provide a strategic investment foundation to support a rebound in potential growth rates. We will accumulate tax revenue increases that exceed long-term trends in the fund to secure stable investment resources."
The government plans to use the future response fund to mitigate tax revenue volatility while focusing investments in four key areas: the youth generation, future growth engines, local regions, and talent development.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.