'Record High' National Debt Reaches 1,022 Trillion Won at End of July... Tax Revenue Increases by 37.3 Trillion Won from January to July

[Asia Economy Sejong=Reporter Kim Hyewon] As of the end of July this year, the national debt balance recorded 1,022 trillion won, an increase of 14.5 trillion won compared to the previous month. Although tax revenue increased by 37.3 trillion won compared to last year until July this year, the managed fiscal balance deficit approached 90 trillion won.

According to the 'Monthly Fiscal Trend September Issue' announced by the Ministry of Economy and Finance on the 15th, total revenue from January to July this year was 394 trillion won, an increase of 37.1 trillion won compared to one year ago.

National tax revenue was 261 trillion won, up 37.3 trillion won from the same period last year. The progress rate was recorded at 65.8%. This was due to increases in corporate tax, income tax, and value-added tax resulting from improved corporate performance and recovery in employment and consumption last year. By tax item, corporate tax increased by 23.9 trillion won due to improved corporate performance compared to the previous year. Income tax also increased by 9.3 trillion won, mainly from earned income tax and comprehensive income tax. Value-added tax increased by 5.5 trillion won. However, transportation tax decreased by 3.4 trillion won due to reductions in fuel tax, among other factors.

Total expenditure from January to July increased by 72.8 trillion won to 450.4 trillion won due to spending on the second supplementary budget (supplementary budget). Fund expenditure increased by 37.4 trillion won due to payments of loss compensation funds to small business owners, and budget expenditure increased by 26.5 trillion won.

Since expenditure exceeded revenue, the integrated fiscal balance (total revenue - total expenditure) recorded a deficit of 56.3 trillion won.

The managed fiscal balance, which shows the government's actual fiscal condition by deducting the four major social security funds such as the National Pension from the integrated fiscal balance, showed a deficit of 86.8 trillion won. However, the deficit narrowed by about 15.1 trillion won compared to the previous month (101.9 trillion won).

The Ministry of Economy and Finance stated, "Although the situation worsened compared to the same period last year due to concentrated spending on supplementary budget projects, it improved compared to the previous month due to increased revenue and decreased expenditure in July," and added, "We plan to manage within the planned range (-110.8 trillion won) until the end of the year."

As of the end of July, the national debt (central government debt balance, local government debt is calculated once a year) was 1,022 trillion won, an increase of 14.5 trillion won compared to one year ago.

The issuance amount of treasury bonds in August was 12.1 trillion won (10.9 trillion won based on competitive bidding). This was 3.5 trillion won less than the previous month. The cumulative treasury bond issuance from January to August was 132.2 trillion won, reaching 74.6% of the annual total issuance limit.

The Ministry of Economy and Finance said, "Due to the prolonged monetary tightening outlook of major countries and concerns about economic recession, market volatility is expected to continue for the time being."

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