National Budget Deficit of 75.7 Trillion Won... Increase of 23.5 Trillion Won in One Year

Economic Slowdown Impact... Corporate Tax Revenue Decreases by About 18 Trillion Won
Management Fiscal Balance Deficit Third Largest in History
Government Debt Increases by 7 Trillion Won to 1,115.5 Trillion Won

The national budget deficit for this year was recorded at 75.7 trillion won, an increase of 23.5 trillion won compared to the previous year.

According to the 'Monthly Fiscal Trend Report for December' released by the Ministry of Economy and Finance on the 12th, the cumulative total revenue from January to October this year was 498.7 trillion won, an increase of 6.2 trillion won compared to the same period last year. The budget execution rate was 64.8%.

Total revenue increased despite a decrease in national tax revenue, due to rises in non-tax revenue and fund income. National tax revenue was 239.6 trillion won, down 11.7 trillion won from the previous year. The decline was led by a 17.9 trillion won decrease in corporate tax due to economic sluggishness and other factors. Income tax (20 billion won) and value-added tax (6.1 trillion won) increased. Non-tax revenue was 24.1 trillion won, up 1.5 trillion won, and fund income increased by 16.4 trillion won to 180.9 trillion won.

Total expenditure reached 529.1 trillion won, an increase of 26.3 trillion won. Budget expenditure was 360.6 trillion won, up 16.6 trillion won. Fund expenditure increased by 10.1 trillion won to 168.3 trillion won. In terms of usage, 3.6 trillion won was spent on national pension benefit payments. The amount for government bond interest repayment was 2.9 trillion won, and 1.8 trillion won was used to support health insurance subscribers.

The integrated fiscal balance, which is the difference between total revenue and total expenditure, recorded a deficit of 30.5 trillion won. Excluding the social security fund surplus of 45.2 trillion won, the managed fiscal balance, which reflects the actual national budget, showed a deficit of 75.7 trillion won. The deficit increased by 23.5 trillion won in one year. The managed fiscal balance deficit as of October is the third largest after 2020 (-90.6 trillion won) and 2022 (-86.3 trillion won). Compared to September, it significantly decreased from 91.5 trillion won, but this is due to the value-added tax revenue coming in October, making it difficult to predict the year-end deficit size.

Government debt stood at 1,155.5 trillion won, an increase of 6.8 trillion won compared to the previous month. Compared to the settlement at the end of last year, it increased by about 63 trillion won.

The issuance of government bonds in November was 7.8 trillion won. The total issuance from January to November this year was 156.2 trillion won, reaching 98.6% of the annual total issuance limit. Foreign net investment in government bonds recorded a slight net outflow.