Even with increased tax revenue... Fiscal deficit reaches 75 trillion won

National Tax Revenue Increases by 60 Trillion Won by September
Ruling Party Raises Pressure on 'Disaster Relief Fund'

[Sejong=Asia Economy Reporter Son Seon-hee] It has been revealed that national tax revenue up to the third quarter increased by nearly 60 trillion won compared to last year. As the ruling party plans to use the excess tax revenue as a basis to launch an all-out offensive to provide disaster relief funds to all citizens, conflicts between the ruling party and the government are expected to intensify. However, the fiscal balance still shows a deficit of about 75 trillion won, and the national debt (central government debt as of October) has also increased to approximately 937 trillion won.

According to the fiscal trends announced by the Ministry of Economy and Finance on the 16th, national tax revenue from January to September this year amounted to 274.5 trillion won, an increase of 59.8 trillion won compared to the same period last year. The progress rate against the government's annual national tax revenue forecast (314.3 trillion won) stands at 87.3%. With the continued economic recovery and a favorable asset market, the three major tax items?income tax, corporate tax, and value-added tax?all saw significant increases.

From January to September, income tax collected was 86.9 trillion won, up 21.8 trillion won from the same period last year. In particular, corporate tax increased by 15.1 trillion won to 65.2 trillion won, achieving a progress rate of 99.4%, meaning most of this year’s tax revenue target has been met. Value-added tax collected was 56.5 trillion won, an increase of 8.8 trillion won. Total revenue, including national tax revenue, non-tax revenue, and fund revenue, reached 442.4 trillion won from January to September, up 88 trillion won from the same period last year. Total expenditure during the same period was 472 trillion won, an increase of 37.2 trillion won. As a result, the managed fiscal balance, which reflects the actual fiscal condition, showed a deficit of 74.7 trillion won.

Ando-geol, the 2nd Vice Minister of the Ministry of Economy and Finance, stated, "Although the tax revenue improvement trend until the third quarter was greater than expected, in the fourth quarter, the improvement is expected to slow down due to asset market stabilization and tax support measures."

As the tax revenue continues to perform well, the ruling party, the Democratic Party of Korea, has intensified pressure for the payment of ‘quarantine support funds.’ Yoon Ho-jung, the floor leader of the Democratic Party, said at the party’s floor strategy meeting that day, "Failing to include over 50 trillion won of excess tax revenue in the revenue budget is a serious dereliction of duty by the fiscal authorities, going beyond mere negligence."

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