According to Yonhap News Agency reported that the Ministry of Strategy and Finance of South Korea released the "October financial trend" data on the 12th, as of August this year, the scale of South Korea's national debt exceeded 1100 trillion won (about 6 trillion yuan), an increase of 12.1 trillion won from the previous month, and the scale of the government's fiscal deficit was slightly reduced to 66 trillion won from the previous month, but still higher than the government's expectations.
Reported that in the first eight months of this year, the South Korean government's fiscal revenue totaled 394.4 trillion won, down 44.2 trillion won year-on-year.
Among them, national tax revenue decreased by 47.6 trillion won to 241.6 trillion won, mainly due to 13.9 trillion won in income tax, 20.2 trillion won in corporate tax, and 6.4 trillion won in value-added tax. Non-tax income was 19.3 trillion won, down 2.8 trillion won. The fund's income increased by 6.2 trillion won to 133.5 trillion won due to the increase in premiums.
Meanwhile, the total government expenditure decreased by 63.5 trillion won year-on-year to 425.8 trillion won during the same period. Due to the normalization of COVID-19 prevention and control and the reduction of subsidies allocated to local governments, the budget expenditure decreased by 16.9 trillion won. With the end of subsidies for small businesses, the fund's expenditure decreased by 36 trillion won.
The report said that the combined fiscal account, which subtracts the total expenditure from the total government revenue, showed a deficit of 31.3 trillion won as of the end of August. In other words, the South Korean government is living beyond its means. The management budget, which excludes the four major security funds including the National pension fund, showed a deficit of 66 trillion won, down 1.9 trillion won from the previous month, but still exceeding the government s annual forecast of 58.2 trillion won. The ratio of the budget deficit to the GDP fell slightly to 2.95 percent.