By April This Year, 33 Trillion More in National Taxes Collected... Fiscal Deficit at 40 Trillion (Update)

Ministry of Economy and Finance Publishes 'Monthly Fiscal Trends and Issues June Edition' on 8th
Income Tax Rises Due to Booming Real Estate and Stock Markets... Corporate Tax Also Increases with Growth in Corporate Operating Profits

[Asia Economy Reporter Jang Sehee] As of April this year, national tax revenue has increased by 32.7 trillion KRW compared to last year. This is due to increased real estate and stock transactions, as well as a rise in corporate operating profits leading to higher corporate tax. Although the increase in tax revenue reduced the fiscal deficit, it still recorded a negative balance in the 40 trillion KRW range.

The Ministry of Economy and Finance announced the "Monthly Fiscal Trends and Issues June Edition (as of the end of April)" on the 8th. National tax revenue up to April this year amounted to 133.4 trillion KRW, an increase of 32.7 trillion KRW compared to last year. The progress rate, which indicates the proportion of the actual collected tax amount against the annual tax collection target, was 47.2%. Regarding this, the Ministry analyzed that "national tax revenue increased due to a faster-than-expected economic recovery and a favorable asset market."

The three major tax categories?income tax, corporate tax, and value-added tax?all showed increases. In particular, corporate tax (29.9 trillion KRW) increased by 8.2 trillion KRW due to a significant rise in corporate operating profits. Income tax (36.7 trillion KRW) rose by 7.9 trillion KRW, driven by the booming real estate and stock markets. Capital gains tax and securities transaction tax increased by 3.9 trillion KRW and 2 trillion KRW respectively compared to a year ago. Value-added tax revenue was 34.4 trillion KRW, up 4.9 trillion KRW from the previous year.

Non-tax revenue such as fines, compensation payments, and national treasury subsidy returns increased by 2.4 trillion KRW compared to the previous year, and fund revenue rose by 16.2 trillion KRW, bringing total revenue to 217.7 trillion KRW, an increase of 51.3 trillion KRW.

Total expenditure from January to April this year was 234 trillion KRW, up 24.3 trillion KRW from the previous year. Accordingly, the managed fiscal balance, which reflects the actual state of national finances, showed a deficit of 40.4 trillion KRW. However, the deficit narrowed compared to one year ago (-56.6 trillion KRW).

As of the end of April, central government debt stood at 880.4 trillion KRW, an increase of 33.5 trillion KRW from the end of last year (846.9 trillion KRW). The government had previously projected that year-end debt would reach 938.4 trillion KRW during the recently announced third supplementary budget.

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