South Korea's fiscal accounts recorded a managed fiscal deficit of 54.2 trillion won during the January-May period, according to the Ministry of Economy and Finance's 'Monthly Fiscal Trends July Issue' released on July 9. Total expenditure of 353.3 trillion won exceeded total revenue of 330 trillion won despite a 50.2 trillion won year-on-year revenue increase. The deficit level matches the same period last year, with the integrated fiscal balance showing a 23.4 trillion won deficit after excluding a 30.8 trillion won surplus from social security funds.
National Tax Revenue Increased 27.5 Trillion Won Year-on-Year
Total revenue from January to May reached 330 trillion won, up 50.2 trillion won from the same period last year. National tax revenue accounted for 199.9 trillion won, an increase of 27.5 trillion won year-on-year.
Income tax rose 9 trillion won due to expanded performance bonus payments and increased real estate transactions. Corporate tax increased 3.9 trillion won following improved corporate performance. Value-added tax and securities transaction tax grew by 4.5 trillion won and 4.1 trillion won respectively.
Non-tax revenue totaled 25 trillion won, up 7.6 trillion won from the previous year. Fund revenue reached 105.1 trillion won, an increase of 15.1 trillion won year-on-year.
Managed Fiscal Deficit Reached 54.2 Trillion Won
Total expenditure for the January-May period stood at 353.3 trillion won, up 38.1 trillion won compared to the same period last year. The integrated fiscal balance recorded a deficit of 23.4 trillion won as total expenditure exceeded total revenue.
The managed fiscal balance, which excludes the 30.8 trillion won surplus from social security funds and represents the actual state of government finances, showed a deficit of 54.2 trillion won. This deficit level is equivalent to the same period last year.
Central Government Debt Rose to 1,345.2 Trillion Won in May
Central government debt outstanding reached 1,345.2 trillion won in May, an increase of 23.6 trillion won from the previous month. Treasury bond issuance in June amounted to 17.1 trillion won.
Cumulative treasury bond issuance from January to June totaled 124.1 trillion won, representing 55.5% of the annual issuance limit. The procurement rate in June was 4.02%, up from 3.87% in the previous month. The bid-to-cover ratio rose to 243% from 233% in the previous month.
Foreign holdings of treasury bonds increased by 3.8 trillion won to 326.8 trillion won.
FAQ
What was South Korea's fiscal deficit for the January-May period?
South Korea recorded a managed fiscal deficit of 54.2 trillion won during the January-May period, according to the Ministry of Economy and Finance. This deficit level matches the same period last year, with total expenditure of 353.3 trillion won exceeding total revenue of 330 trillion won.
How much did national tax revenue increase year-on-year?
National tax revenue increased 27.5 trillion won year-on-year to 199.9 trillion won for the January-May period. Income tax rose 9 trillion won due to expanded performance bonus payments and increased real estate transactions, while corporate tax increased 3.9 trillion won following improved corporate performance.
