Fiscal Deficit Reaches 86.1 Trillion Won by October... Third Largest on Record

National Debt Reaches 1,275.3 Trillion Won

As of October this year, the national fiscal deficit reached 86.1 trillion won. The managed fiscal balance deficit is the third largest on record.

According to the December issue of the "Monthly Fiscal Trends" released by the Ministry of Economy and Finance on December 11, total revenue as of the end of October stood at 540.8 trillion won, an increase of 55.6 trillion won compared to the same month last year. National tax revenue reached 330.7 trillion won, up 37.1 trillion won from the previous year. Corporate tax increased by 22.2 trillion won due to improved corporate performance, and income tax rose by 11.1 trillion won as a result of expanded bonuses and an increase in the number of employees. Value-added tax also increased by 300 billion won due to the rise in exchange rates. Non-tax revenue reached 26.4 trillion won, up 2.3 trillion won from the same period last year. Total expenditure through October was 584.8 trillion won, an increase of 55.6 trillion won compared to the same period last year. The execution rate of expenditure compared to the second supplementary budget is 83.2%.

The consolidated fiscal balance, which is the difference between total revenue and total expenditure, recorded a deficit of 44 trillion won. The managed fiscal balance, which subtracts the four major social security funds such as the National Pension from the consolidated fiscal balance, posted a deficit of 86.1 trillion won. This is the third largest deficit on record, following 90.6 trillion won in 2020 and 86.3 trillion won in 2022. Compared to the deficit of 75.7 trillion won during the same period last year, the deficit has widened by 10.5 trillion won.

Compared to the deficit exceeding 102.4 trillion won as of September, the deficit has decreased significantly from the previous month. An official from the Ministry of Economy and Finance explained, "The balance is the result of subtracting total expenditure from total revenue. Expenditure continues to increase, but revenue fluctuates from month to month. In September, there were no major scheduled tax revenues, whereas in October, there was a value-added tax payment schedule, which caused a change in revenue." The official added, "It is a typical pattern for the balance to rise in September and then decline in October."

Based on central government standards, national debt stood at 1,275.3 trillion won at the end of October, an increase of 16.3 trillion won from the previous month. The amount of government bonds issued in October was 15.6 trillion won. Government bond interest rates in October rose compared to the previous month, reflecting changes in market expectations about future interest rate trends. From January to November, a total of 220.8 trillion won in government bonds were issued, filling 95.5% of the annual issuance limit.

This content was produced with the assistance of AI translation services.