North Korea's 'March of Hardship'... This Year's Budget Revenue Up 0.9%

KDI 'April North Korea Economic Review'

North Korea's Korean Central TV broadcasting a special program on the COVID-19 situation on December 25 last year. (Image source=Yonhap News)

[Sejong=Asia Economy Reporter Moon Chaeseok] A survey revealed that North Korea's budget revenue growth rate this year was only 0.9% compared to last year. Amid severe economic damage caused by the COVID-19 pandemic, North Korean leadership is analyzed to have decided on a 'March of Hardship.'

The Korea Development Institute (KDI) published the 'April North Korea Economic Review' on the 30th, which included a report titled 'Composition of North Korea's National Budget Revenue.' This report analyzed the composition and details of North Korea's budget revenue items.

North Korea abolished its tax system through a constitutional amendment in 1972. It became the only country in the world without taxes but raises government funds by creating various budget revenue items. North Korean institutions and enterprises are divided into independent accounting institutions with their own income and budget institutions that operate without their own income and use the state budget. The obligation to pay the budget falls on independent accounting institutions and enterprises.

The report explained, "North Korea recently decided to undertake a 'March of Hardship' at the Workers' Party Cell Secretary Conference and suggested using this as an opportunity to strengthen internal unity," adding, "The budget revenue growth rate announced by North Korea through this year's Supreme People's Assembly was 0.9%, the same as last year during the COVID-19 crisis, which is a very low level."

Meanwhile, North Korea is setting 'Sustainable Development Goals' to end poverty and eradicate hunger. North Korea recognizes that the international community's universal efforts to pursue sustainable development and poverty eradication align with policies for building a socialist power.

However, from the perspective of the Sustainable Development Goals, it is estimated that a significant portion of North Korea's population remains in absolute poverty. According to a 2019 report by the UNICEF North Korea office, about 10 million out of a total population of approximately 25 million are unable to properly access basic public services. In the Fragile States Index (FSI) published annually by the Fund for Peace (FFP), North Korea ranked as the 30th most fragile country out of 178 countries.

The hunger issue is also serious. North Korea ranked only 92nd out of 117 countries analyzed in the 2019 Global Hunger Index. Assistant Professor Song Cheoljong of the Department of International Economics and Trade at Sun Moon University said, "We need to link North Korea's UN strategic plan with the Korean-style Sustainable Development Goals (K-SDGs) to promote inter-Korean exchange and cooperation," adding, "We should concretize the detailed goals of K-SDGs to enhance inter-Korean cooperation and promote them in connection with the strategic priorities in North Korea's UN strategic plan to create a 'UN-North Korea-South Korea' triangular framework, enabling South Korea to play a key role in North Korean issues."

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