April Fiscal Deficit Hits 46.1 Trillion Won... 'Third Largest on Record'

June Fiscal Trends: Total Revenue Up by 17.7 Trillion Won
Impact of Increased Corporate Profits Last Year

The managed fiscal balance, which reflects the government's financial health, posted a cumulative deficit of 46.1 trillion won as of April this year. Although this marks an improvement compared to the same period last year, it is still the third largest deficit on record.

According to the "Monthly Fiscal Trends June Edition" released by the Ministry of Economy and Finance on June 12, cumulative total revenue as of the end of April reached 231.1 trillion won, an increase of 17.7 trillion won from a year earlier.

National tax revenue amounted to 142.2 trillion won, up 16.6 trillion won from the previous year. Corporate tax revenue increased by 13 trillion won, as corporate performance improved last year and both interest and dividend income for corporations rose. April is typically the period when corporate tax payments for the previous year are finalized, and the significant increase in profits among KOSPI-listed companies last year had an impact. Income tax revenue also rose by 3.5 trillion won, due to expanded bonus payments and an increase in the number of employees.

Non-tax revenue was 15.1 trillion won, an increase of 4 trillion won from the previous year. However, fund income fell by 2.9 trillion won to 73.7 trillion won. Hwang Heejung, Director of Fiscal Soundness, explained, "This is because contributions to the Employment Insurance Fund and the Industrial Accident Compensation Insurance Fund were slightly lower this month."

Total expenditure as of the end of April this year was 262.3 trillion won, up 1.9 trillion won from last year. As total expenditure exceeded total revenue, the consolidated fiscal balance, which is calculated by subtracting total expenditure from total revenue, recorded a deficit of 31.2 trillion won. The managed fiscal balance, which excludes the balance of social security funds such as the National Pension (a surplus of 14.8 trillion won), posted a deficit of 46.1 trillion won. Compared to the same period last year, the deficits have improved by 15.8 trillion won and 18.5 trillion won, respectively.

However, as of the end of April this year, the managed fiscal balance was the third largest on record, following a deficit of 56.6 trillion won in 2020 and 64.6 trillion won in 2024. If the 13.8 trillion won supplementary budget (extra budget), which passed the National Assembly in May, is fully reflected, the deficit is expected to grow further. To finance the supplementary budget, nearly 10 trillion won in additional government bonds will be issued.

As of the end of April this year, the central government's outstanding debt stood at 1,197.8 trillion won, an increase of 22 trillion won from the previous month. In May, 19 trillion won in government bonds were issued, with a net inflow of 9.1 trillion won from foreign investors. From January to May, a cumulative total of 100.2 trillion won in government bonds was issued, accounting for 48.4% of the annual issuance limit.