The government emphasized that it would execute a historically high level of rapid implementation in the first half of this year; however, the budget execution speed in January was recorded as the lowest since the statistical aggregations began in 2014. The Ministry of Economy and Finance explained, "Expenditure decreased as the number of business days in January significantly reduced due to the Lunar New Year holiday."
According to the Monthly Fiscal Trends report published by the Ministry of Economy and Finance on the 13th for March 2025, the total expenditure in January was 52.7 trillion won, a decrease of 3.2 trillion won compared to the same month last year. The progress rate was 7.8%, the lowest level since statistics were aggregated in 2014.
The Ministry of Economy and Finance explained that the total expenditure decreased due to a reduction in business days in January because of the Lunar New Year holiday. According to the ministry, last month's business days amounted to 18, the lowest level since monthly statistics were compiled in 2014.
The Ministry of Economy and Finance said, "The number of business days in January of this year was 4 days less than in January of the previous year," adding that "the average daily total expenditure increased from 2.5 trillion won in January last year to 2.9 trillion won in January this year."
In January this year, national tax revenue was 46.6 trillion won, an increase of 7 billion won compared to the same month last year. The progress rate was 12.2%, similar to the recent 5-year average progress rate of 12.5%.
Specifically, corporate tax increased by 7 billion won compared to January of last year. Corporate tax revenue increased as corporate interest and dividend income rose. Income tax revenue also increased by 7 billion won compared to the same month last year, due to an increase in earned income tax from performance bonuses.
However, value-added taxes decreased by 8 billion won compared to the same month last year. This was due to an increase in refunded tax amounts and a decrease in import amounts. In January of this year, the import amount was $51 billion, a decrease of 6.4% ($3.5 billion) compared to January of the previous year.
The security transaction tax also fell by 2 billion won compared to the same month last year. The securities trading amount in December of last year decreased by 14.7% (52.8 trillion won) compared to December 2023, resulting in a decrease in the security transaction tax.
Non-tax revenue was 1.7 trillion won, a decrease of 6 billion won compared to the same month last year, and fund revenue was 17.9 trillion won, a decrease of 9 billion won compared to the same month last year.
The consolidated fiscal balance recorded a surplus of 13.5 trillion won, an increase of 2.3 trillion won compared to a surplus of 11.2 trillion won in the same month last year. Typically, January often sees a surplus as it is the beginning of budget execution and a period for filing value-added tax.
The management fiscal balance, which shows the actual financial situation of the government (total revenue - total expenditure - 4 social security fund), recorded a surplus of 11.5 trillion won in January. This was an increase of 3.2 trillion won compared to the same month last year (8.3 trillion won). The surplus scale of the management fiscal balance this January was the third following January 2017 (12.7 trillion won) and January 2018 (12.6 trillion won). The Ministry of Economy and Finance explained the surplus of the management fiscal balance as being impacted by a decrease in total expenditure.