First Quarter National Deficit Reaches 61.3 Trillion Won, Second Largest Ever... Fiscal Soundness Warning Signs

It has been revealed that the scale of the national deficit in the first quarter of this year exceeded 60 trillion won. This is the second-largest figure, following the 75.3 trillion won recorded in the first quarter of last year, which was the largest ever. 

Even taking into account the annual early execution of the budget, concerns regarding fiscal soundness are emerging.

According to the 'Monthly Fiscal Trends May Edition' announced by the Ministry of Economy and Finance on the 15th, total revenue as of the end of March this year was tallied at 159.9 trillion won. This is an increase of 12.5 trillion won compared to the same period last year. 

Among this, national tax revenue was 93.3 trillion won, an increase of 8.4 trillion won. By tax item, income tax increased by 2.8 trillion won and corporate tax increased by 6.5 trillion won. 

This is interpreted as a result of the influence of expanded performance bonuses, an increase in the number of workers, improved performance of settlement corporations, and an increase in interest and dividend income. 

On the other hand, value-added tax decreased by 1.5 trillion won.

Non-tax revenue was 11.3 trillion won, an increase of 3.9 trillion won, and fund revenue also increased by 200 billion won to 55.3 trillion won.

On the other hand, total expenditure during the same period was reported at 210 trillion won. This is a decrease of approximately 2.2 trillion won compared to the same time last year. 

Accordingly, the consolidated fiscal balance, which subtracts total expenditure from total revenue, recorded a deficit of 50 trillion won.

The managed fiscal balance, which excludes the social security fund balance (a surplus of 11.3 trillion won) such as the National Pension among the consolidated fiscal balance, recorded a deficit of 61.3 trillion won.

This is a scale approximately 14 trillion won smaller than the 75.3 trillion won in the first quarter of last year.

However, supplementary budget factors that have not yet been reflected due to accounting procedures are expected to affect future figures. 

When the supplementary budget of 13.8 trillion won, which recently passed the National Assembly, is reflected in the fiscal statistics, the deficit width will approach last year's level.  

To secure the resources for this supplementary budget, nearly 10 trillion won in government bonds are scheduled to be additionally issued. 

The central government's debt scale has decreased slightly. As of the end of March, central government debt was 1,175.9 trillion won, a decrease of 4.6 trillion won from a month ago.

During the month of April, a total of 20.9 trillion won in Treasury bonds were issued, and 9.6 trillion won was a net inflow from foreign investment.

The cumulative amount of Treasury bonds issued from January to April this year is 81.2 trillion won, having already exhausted 41.1% of the annual issuance limit.