Last Year's Global Surplus of 9.4 Trillion Won... Six Consecutive Years of Surplus

Announcement of the Closing Results for the Total Revenue and Total Expenditure Accounts for Fiscal Year 2020

[Image source=Yonhap News]

[Asia Economy Reporter Jang Sehee] The global surplus (the cash balance remaining in the treasury after spending the necessary expenditure costs for one year in government finance) left over from last year's budget was 9.4 trillion won, marking a surplus for six consecutive years. This was due to revenue exceeding the budget and a decrease in carryover amounts.

On the 9th, the Ministry of Economy and Finance closed the total revenue and total expenditure accounts for the 2020 fiscal year. Last year's total revenue was 465.5 trillion won, total expenditure was 453.8 trillion won, and the settlement surplus, the difference, was confirmed at 11.7 trillion won. After subtracting the carryover amount of 2.3 trillion won, the global surplus recorded a surplus of 9.4 trillion won. This marks six consecutive years of surplus since 2015.

The global surplus totaled 9.4 trillion won, an increase of 7.3 trillion won compared to last year (2.1 trillion won). The general account recorded a surplus of 5.7 trillion won, and the special account recorded a surplus of 3.6 trillion won. The global surplus increased due to 5.5 trillion won more tax revenue than budgeted and a 300 billion won decrease in carryover amounts.

A government official analyzed, "There was an excess revenue of 5.5 trillion won last year, and the carryover amount decreased."

Going forward, according to Article 90 of the National Finance Act, the general account will first be used for local allocation tax, local education finance grants, and public fund repayment funds, and then can be utilized for supplementary budget formation. The special account plans to take its own revenue measures.

Meanwhile, based on the closing performance, the government plans to additionally calculate fiscal balance, national debt, financial statements, etc., prepare the "National Settlement Report," and submit it to the National Assembly by the end of May after the Board of Audit and Inspection's settlement audit.

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