S. Korea’s national debt nears $880 bn by April despite increased tax revenue

2022.06.16 15:13:27 | 2022.06.16 16:36:09

[Graphics by Song Ji-yoon]이미지 확대

[Graphics by Song Ji-yoon]

South Korea’s national liabilities topped 1,000 trillion won ($778 billion) mark in April on snowballing debts from government and public sectors.

According to monthly fiscal balance report released by the Ministry of Economy and Finance on Thursday, the country’s national liabilities came to 1,001 trillion won as of the end of April, up 19.1 trillion won from a month ago. Exceeding the 1,000 trillion won mark for the first time, the national liabilities, which combine those of central government and regional governments, are projected to reach 1,068.8 trillion won by December.

Government bond issues in May amounted 17.8 trillion won, putting the cumulative figure for the first five months to 90 trillion won to already top half of debt issue ceiling for this year.

Managed fiscal balance, which is factors out expenses for top 4 social security funds from consolidated balance to shows the country’s actual fiscal strength, came to a deficit of 37.9 trillion won. It narrowed by 2.5 trillion won versus a year ago.

Consolidated fiscal deficit amounted 21.3 trillion won as expense engulfed income. The deficit increased 5 trillion won from a year earlier, mainly due to fall in profits generated from public fund investment operations.

The Korean government generated 245.9 trillion won in tax revenue in April, 28.3 trillion won more than a year earlier.

Tax income expanded 34.5 trillion won to 167.9 trillion won. The government has collected 42.3 percent of tax collection target for this year, based on second extra budget creation of 396.6 trillion won.

By category, income from corporate tax increased 21.4 trillion won, income tax 8 trillion won and value added tax 5.3 trillion won. Transportation tax income decreased 2.1 trillion won from a year ago due to cut in fuel tax.

Income from public fund operations fell 7.4 trillion won on year to 63.8 trillion won after generating 8.6 trillion won less revenue from asset management.

Other non-tax income was 14.2 trillion won.

Total expenditure reached 267.3 trillion won in April, up 33.2 trillion won versus a year ago. The government has spent 39.3 percent of its expenditure plan for this year.

By Cho Jeehyun

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]