National Tax Revenue Up by 39.2 Trillion Won,
Total Expenditure Surges by 54.3 Trillion Won
As of November last year, the national fiscal deficit approached approximately 90 trillion won, marking the third-largest deficit for the same period on record. Although national tax revenue increased significantly, the pace of total expenditure growth outstripped revenue, resulting in a continued deterioration of the fiscal balance.
According to the January edition of the “Monthly Fiscal Trends” published by the Ministry of Economy and Budget on January 15, cumulative total revenue as of the end of November last year stood at 581.2 trillion won, an increase of 39.2 trillion won compared to the same period the previous year. The execution rate against the annual budget was 90.5%. During the same period, total expenditure reached 624.4 trillion won, up by 54.3 trillion won year-on-year.
As a result, the consolidated fiscal balance, calculated by subtracting total expenditure from total revenue, recorded a deficit of 43.3 trillion won. Excluding the surplus from social security funds such as the National Pension Fund (46.3 trillion won), the managed fiscal balance deficit amounted to 89.6 trillion won. This is the third-largest deficit for the same period on record, following 98.3 trillion won in 2020 and 98 trillion won in 2022. Compared to the same period last year, the deficit widened by about 8.3 trillion won.
The managed fiscal balance, which reflects the government's actual fiscal status, is gradually approaching this year’s budgeted deficit target of 111.6 trillion won. The Ministry of Economy and Budget stated, “As the end of the year approaches, the managed fiscal deficit will converge toward the budgeted deficit level.”
Of the total revenue, national tax revenue was 353.6 trillion won, an increase of 37.9 trillion won compared to the same period the previous year. By tax category, corporate tax increased by 22.2 trillion won and income tax rose by 12.3 trillion won. In contrast, value-added tax decreased by 500 billion won due to increased refunds, and securities transaction tax declined by 1.4 trillion won as a result of a lower tax rate.
On the 30th, officials are supplying Chuseok currency at the Bank of Korea Currency Receiving Office in Jung-gu, Seoul. September 30, 2025. Photo by Joint Press Corps
Non-tax revenue reached 28.4 trillion won, up by 2.3 trillion won, while fund revenue was 199.2 trillion won, a decrease of 800 billion won from the previous year. Overall, revenue showed signs of improvement, but the scale of the increase was limited.
On the expenditure side, budget execution amounted to 431.8 trillion won and fund expenditure totaled 192.5 trillion won. The budget execution rate was 92.4%, and the fund execution rate was 81.6%. As fiscal execution proceeded rapidly, the increase in expenditure (54.3 trillion won) far outpaced the increase in revenue (39.2 trillion won), leading to a worsening of the fiscal balance.
Based on central government figures, national debt stood at 1,289.4 trillion won at the end of November, an increase of 14.1 trillion won from the previous month. Of this, the balance of government bonds was 1,287.8 trillion won. The government expects that, on an annual basis, central government debt will remain within the initially projected range.
The issuance of treasury bonds to cover the fiscal deficit is also proceeding at a rapid pace. As of December last year, the cumulative issuance of treasury bonds reached 226.2 trillion won, filling 97.9% of the annual issuance limit.
Reflecting changes in interest rate trends, in December, short-term treasury bond yields declined while long-term yields rose, influenced by the U.S. base rate cut and increases in long-term rates in Japan. As a result, the three-year treasury bond yield was recorded at 2.952% per annum, and the ten-year yield at 3.385%. Foreign holdings of treasury bonds stood at 297.4 trillion won, an increase of 3.7 trillion won over the past month.
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