As this year's national tax revenue is projected to exceed the initial forecast from the end of March by more than 63 trillion won, attention is turning to how the funds will be utilized.

The possibility of using it as additional financial resources for the government's newly promoted "Future Response Fund" is being strongly discussed, raising expectations that the fund's size could surpass 200 trillion won.

However, it has not yet been finalized how much of this excess tax revenue will actually be transferred to the fund.

The allocation scale is expected to vary significantly depending on whether the foundational legislation passes the National Assembly and on final policy decisions.

As instability in the government bond market grows due to recent rises in major countries' government bond yields, arguments have also emerged that the excess tax revenue should be used to enhance fiscal soundness, such as by repaying government bonds.

According to the government on the 30th, this year's national tax revenue is projected to increase by 63.2 trillion won compared to the supplementary budget announced at the end of March.

The government explained that an unexpected semiconductor boom significantly influenced the sharp upward revision of the national tax revenue forecast in just six months.

Among this, the amount of excess tax revenue that can be accumulated in the newly launched Future Response Fund is estimated to be around up to 56.2 trillion won.

The Ministry of Economy and Budget stated through the bill on the establishment and operation of the Future Response Fund submitted to the National Assembly that additional tax revenue, excess tax revenue, and fund operation profits will be utilized as financial resources for the fund.

Since the excess tax revenue under the enactment bill is based on internal taxes excluding the special tax for rural development, it will be reduced by around 7 trillion won from the 63.2 trillion won.

If the excess tax revenue in the 56 trillion won range goes "straight" into the Future Response Fund, the size of the fund will exceed 200 trillion won and reach the 218 trillion won range.

This represents a massive expansion from the government's previous announcement to newly establish the fund at a scale of 162.3 trillion won using additional tax revenue.

However, whether the Future Response Fund will be expanded through excess tax revenue is expected to depend on discussions in the National Assembly and future economic conditions.

This is because the foundational bills, including the Future Response Fund Act and the amendment to the National Finance Act, have not yet passed the National Assembly.

In addition, policy judgments remain regarding how much of the internal tax excess revenue in the 56 trillion won range should be utilized for the Future Response Fund.

Therefore, the allocated figures for the Future Response Fund and its final launch scale are expected to take shape only when the budget bill and related legislation are finalized around the end of the year.

President Lee Jae-myung announced the previous day a policy to pursue three core social policies concerning housing, jobs, and livelihood finance, stating, "In particular, we must actively utilize available financial resources and policy tools, including excess tax revenue, to alleviate polarization and inequality, which are the core factors of public livelihood instability."

Amid market instability stemming from the recent rise in major countries' government bond yields, voices arguing that excess tax revenue should be used to repay national debt are not small.

The current National Finance Act stipulates that when excess tax revenue occurs, it should be used primarily for national bond repayment.

Government bond yields in major countries, centered around the United States, are soaring.

On the 29th (local time), the U.S. 30-year Treasury yield rose to 5.612% during intraday trading, marking its highest level since June 2002.

Along with an increase in total expenditures, South Korea's national debt is projected to grow from the 1,400 trillion won range this year to the 1,700 trillion won range by 2030.

However, the government maintains the stance that as nominal gross domestic product (GDP) grows significantly, the national debt-to-GDP ratio will decline compared to previous projections.

(Photo: Yonhap News)