Government to Accelerate Investment in Future Response Fund with Surplus Tax Revenue from Semiconductor Boom

A blueprint for the Future Response Fund, utilizing increased national tax revenue such as corporate tax stemming from the semiconductor boom, has been unveiled. The government revealed its strategy to concentrate investments in this fund on securing future growth engines—such as the youth and growth drivers—to reverse the decline in potential growth rates and seize the initiative in the global technology hegemony war.

The financial structure of the Future Response Fund is designed to center on additional tax revenue and excess tax revenue. Additional tax revenue refers to the surplus amount when the budget for the following year's national tax revenue exceeds the national tax trend line. The trend line is calculated by determining the annual average growth rate based on how much tax has increased each year over the past decade. In essence, additional tax revenue is generated when the tax revenue budget for the following year exceeds the estimate based on the past decade's trend. Excess tax revenue refers to the increase—specifically, the difference in revenue projections—when the national tax revenue budget, recalculated annually in September, surpasses the initial revenue budget. The government has not yet disclosed the specific scale of the fund.

Investment areas are condensed into four key sectors: youth, growth engines, regions, and education and talent. Within the growth engines sector, funds will be allocated to achieving the 'AI Top 3' leap and supporting the three mega projects.

The government discussed the promotion plan for the Future Response Fund during the first Fiscal Operation Strategy Meeting. It plans to announce the legislative notice for the 'Future Response Fund Package Bill' on the 24th. Subsequently, it intends to submit the package bill to the National Assembly alongside the government budget proposal next month on the 3rd.