National debt exceeds 1,100 trillion won… The country has a deficit of 66 trillion won.

2023-10-12 02:40:01

August national debt and management fiscal balance exceeded the government’s annual forecast

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▲ According to the October fiscal trends announced by the Ministry of Strategy and Finance on the 12th, national debt (central government debt) as of August was 1,110 trillion won, exceeding the government’s forecast for the end of this year (1,101.7 trillion won).
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As of last August, national debt exceeded 1,100 trillion won, increasing from the previous month.

The managed fiscal balance, which represents the country’s finances, improved from a month ago to a deficit of 66 trillion won, but still exceeded the government’s annual forecast.

According to the October fiscal trends announced by the Ministry of Strategy and Finance on the 12th, the government’s total revenue as of August this year was 394.4 trillion won, a decrease of 44.2 trillion won compared to the same time last year.

National tax revenue decreased by 47.6 trillion won to 241.6 trillion won. This is the result of a reduction of 13.9 trillion won in income tax, 20.2 trillion won in corporate tax, and 6.4 trillion won in value-added tax.

Non-tax income was calculated to be 19.3 trillion won, a decrease of 2.8 trillion won due to a decrease in the Bank of Korea’s surplus.

Fund income increased by 6.2 trillion won to 133.5 trillion won. This is the result of increased insurance premium income, etc.

During the same period, the government’s total expenditure was 425.8 trillion won, a decrease of 63.5 trillion won compared to the same time last year.

Looking at the specific details, budget expenditures decreased by 16.9 trillion won due to reductions in COVID-19 response projects and reductions in local allocation taxes and grants.

The fund’s spending decreased by 36 trillion won due to the end of loss compensation payments to small business owners.

The government’s consolidated fiscal balance, which subtracts total expenditures from total revenues, was a deficit of 31.3 trillion won as of the end of August. This means that more money has been spent than has come into the government.

The management fiscal balance, which shows the government’s actual financial status by subtracting the balance of the four major security funds, including the national pension, from the consolidated fiscal balance, was a deficit of 66 trillion won.

The size of the deficit in the management fiscal balance improved by 1.9 trillion won compared to a month ago, and the deficit ratio (2.95%) to gross domestic product (GDP) predicted by the government for this year fell below 3%.

However, the size of the management budget deficit exceeds the government’s forecast for this year (deficit of 58.2 trillion won).

As of the end of August, national debt (central government debt) amounted to 1,110 trillion won, exceeding 1,100 trillion won. The amount of government bond issuance exceeded the amount of repayment, increasing by 12.1 trillion won from a month ago.

Compared to the end of last year, it increased by 76.5 trillion won, exceeding the government’s forecast for the end of this year (1,101.7 trillion won).

The government expects that the national debt at the end of the year will converge to the forecast, considering the future treasury bond repayment schedule. The government plans to repay 24 trillion won in government bonds in September.

The volume of government bond issuance from January to September was 144.4 trillion won, which is 86.1% of the total annual issuance limit (167.8 trillion won).

In September, net investment by foreigners in treasury bonds was calculated to have resulted in an outflow of 1 trillion won. The balance of government bond holdings by foreigners was 213.9 trillion won as of the end of September.

Reporter Shin Jin-ho

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