Fiscal Deficit Improves to 36.6 Trillion Won in Jan-April... Tax Revenue Rises on Semiconductor Boom

As tax revenue continues to rise thanks to the semiconductor boom, the national fiscal deficit for January to April this year has improved. The managed fiscal balance deficit stood at 36.6 trillion won, an improvement of 9.5 trillion won compared to a year earlier, marking the lowest level since 2019.

According to the “Monthly Fiscal Trends: June Edition” released by the Ministry of Planning and Budget on June 11, cumulative total revenue for January to April this year reached 272.3 trillion won, up 41.3 trillion won from the same period last year. Total expenditure was 285.6 trillion won, an increase of 23.3 trillion won year-on-year.

National tax revenue amounted to 164.1 trillion won, an increase of 21.9 trillion won from the same period last year. The execution rate relative to the annual budget was 39.5%, 1.3 percentage points higher than last year.

The growth in national tax revenue was evenly distributed among the three major tax categories. Income tax increased by 5.9 trillion won due to higher performance bonuses and increased real estate transactions, while corporate tax rose by 3.2 trillion won as corporate performance improved, particularly in the semiconductor sector.

Value-added tax increased by 4.7 trillion won, driven by a reduction in refunds and growth in imports. Securities transaction tax rose by 3.1 trillion won due to increases in transaction volume and the restoration of the tax rate.

Consequently, the consolidated fiscal balance recorded a deficit of 13.2 trillion won, which is an 18 trillion won reduction in the deficit compared to the same period last year. Excluding social security funds such as the National Pension from the consolidated balance, the managed fiscal balance posted a deficit of 36.6 trillion won, an improvement of 9.5 trillion won year-on-year.

The managed fiscal balance deficit is at its lowest level for April since just before the pandemic in 2019.

As of the end of April, national debt stood at 1,321.7 trillion won, up 18.2 trillion won from the previous month.

The volume of government bonds issued in May was 22.9 trillion won, with the amount issued through competitive bidding at 18 trillion won. For January to May, government bond issuance totaled 107 trillion won, representing 47.8% of the annual issuance cap of 225.7 trillion won.

Government bond yields rose from the previous month, influenced by rising interest rates in major economies and shifts in monetary policy expectations. The three-year bond yield at the end of the period was 3.731%, and the ten-year bond yield was 4.068%, both higher than the previous month (3.595% and 3.923%, respectively).

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