Deficit of 64 Trillion Won in National Finances from January to April... Largest Ever for April

National Tax Revenue Decreased by 8.4 Trillion Won as of April

The managed fiscal balance deficit, which reflects the state finances, has exceeded 64 trillion won. This is the largest scale ever recorded for April since monthly fiscal balances began to be compiled in 2014. The impact of rapid budget execution amid poor corporate earnings has influenced this outcome, as corporate tax revenues have not been collected well.

Ministry of Economy and Finance. [Source=Asia Economy DB]

According to the 'Monthly Fiscal Trend June Issue' announced by the Ministry of Economy and Finance on the 13th, the managed fiscal balance deficit from January to April this year was 64.6 trillion won. This represents an expansion of 19.2 trillion won compared to the same period last year.

However, compared to the previous month, March, which recorded the highest deficit at 75.3 trillion won, there was an improvement of 10.7 trillion won. The managed fiscal balance, which reflects the state finances, is calculated by subtracting the four major social security funds, including the National Pension Fund that records annual surpluses, from the integrated fiscal balance, which is the government's total revenue minus total expenditure, thus showing the actual state finances.

The reason the managed fiscal balance deficit recorded the largest scale ever for April is that while tax revenues were not collected well, budget execution proceeded at the fastest pace ever. According to the Ministry of Economy and Finance, cumulative national tax revenue from January to April was 125.6 trillion won, a decrease of 8.4 trillion won compared to the same period last year. Although value-added tax revenue increased by 4.4 trillion won compared to the previous year, corporate tax revenue decreased by as much as 14.9 trillion won due to poor business performance of large corporations.

A Ministry of Economy and Finance official explained, "Considering the scale of the managed fiscal balance planned in this year's budget, the deficit itself inevitably has to be large." The government had announced that it would maintain the managed fiscal balance deficit at around 91.6 trillion won this year.

Budget expenditures are progressing rapidly. Total expenditure from January to April recorded 260.4 trillion won, an increase of 19.6 trillion won compared to the previous year. The progress rate against the budget was calculated at 39.7%. The Ministry explained that 48.5% (122.7 trillion won) of the rapid execution budget of 252.9 trillion won planned for the year had been executed. The progress rate of the rapid execution budget is the fastest ever.

Cumulative total revenue increased by 1.5 trillion won compared to the same period last year, as non-tax revenue and fund revenue increased despite the decrease in national tax revenue. Non-tax revenue from January to April was 11.1 trillion won, an increase of 700 billion won, and fund revenue during the same period recorded 76.6 trillion won, an increase of 9.2 trillion won.

National debt was recorded at 1,128.9 trillion won as of the end of April, marking the highest ever. It increased by 13.4 trillion won compared to the previous month and by 36.4 trillion won compared to 1,092.5 trillion won at the end of last year. A Ministry of Economy and Finance official explained, "Redemption of treasury bonds is concentrated at the end of the quarter, and April was a month with more issuance than redemption."

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