[Exclusive] Ministry of Economy and Finance Will Not Disclose 'Fiscal Vision 2050'

Sharing limited to relevant departments
Future Vision 2050 to be announced within the year as planned

The government has decided not to disclose the 'Fiscal Vision 2050,' which outlines the medium- to long-term fiscal strategy for the next 30 years. Concerns are rising that the disclosure of the nation's medium- to long-term fiscal strategy might be indefinitely postponed and eventually fade away.

According to related ministries on the 23rd, the Ministry of Economy and Finance is seriously considering keeping the Fiscal Vision 2050, originally scheduled for release by the end of this year, confidential. A ministry official stated, "The Fiscal Vision 2050 will not be announced externally but will only be shared internally within relevant government departments."

The announcement timing of Fiscal Vision 2050 has been repeatedly delayed. In January last year, the Ministry of Economy and Finance stated at the first fiscal management strategy meeting that it would finalize and promote the Fiscal Vision 2050 within the first half of the year, but in June, the announcement was postponed to the second half. Later, the ministry adjusted the schedule again to unify the direction with the 'Future Vision 2050,' led by the Future Strategy Bureau, aiming to announce it within this year.

Fiscal Vision 2050 is a project that began in the second half of 2022, early in the Yoon Suk-yeol administration. The government has been establishing national fiscal management plans every five years but recognized limitations in long-term fiscal responses, intending to develop a fiscal strategy looking a generation ahead. The Fiscal Vision was to include future fiscal strategies such as the target fiscal scale relative to GDP by 2050, investment proportions by sector, national debt ratio, and national burden rate.

However, due to last year's decline in tax revenue, uncertainty regarding fiscal scenarios increased, and with overlapping election schedules, the announcement was postponed until the end of this year. Particularly, since the Fiscal Vision was expected to include labor reform, health insurance reform, and pension reform, it was interpreted that the government considered the potential negative impact on the general election.

The Ministry of Economy and Finance's decision not to disclose the Fiscal Vision 2050 appears to stem from heightened uncertainties in setting fiscal scenarios. Amid challenging tax revenue conditions, the government is pursuing policies that reduce the tax base, such as abolishing the financial investment income tax, dividend income separation taxation, and corporate tax credits related to corporate value-up policies. However, with the 22nd National Assembly increasingly divided with a minority government, the government's policy momentum has significantly weakened, adding to the uncertainty.

However, the Future Vision 2050, which was to be released alongside the Fiscal Vision 2050, will be announced as scheduled within this year. The Future Vision aims to propose policies from a long-term perspective beyond just fiscal matters. It will suggest directions for addressing overall challenges faced by Korean society, such as climate change, low birth rates, and aging population. A ministry official said, "The Future Vision will be announced within this year without fail."