As of the end of August this year, the national finances posted a deficit of 88.3 trillion won. This is the result of the execution of the 2nd supplementary budget being fully reflected starting last month, and it is the second largest on record for the same point in time after August 2020 (96 trillion won), when three supplementary budgets were implemented.
According to the October issue of the Monthly Fiscal Trends published by the Ministry of Economy and Finance on the 16th, cumulative total revenue through the end of August was 431.7 trillion won, up 35 trillion won from the same period a year earlier.
National tax revenue was 260.8 trillion won, up 28.6 trillion won from a year earlier. By tax item, corporate tax increased by 17.8 trillion won on the back of improved performance by corporations and growth in interest and dividends income, and income tax also rose by 9.6 trillion won. Earned income tax was affected by expanded performance bonuses and increased employment, and capital gains tax was analyzed to have been influenced by brisk overseas stock transaction.
Non-tax revenue was 22.8 trillion won, up 2.2 trillion won from a year earlier, and fund revenue was 148.1 trillion won, up 4.2 trillion won.
Over the same period, total expenditure was 485.4 trillion won, up 38.4 trillion won from a year earlier.
The consolidated fiscal balance, which subtracts total expenditure from total revenue, recorded a deficit of 53.7 trillion won. Excluding a surplus of 34.6 trillion won in social security funds such as the National Pension Service, the consolidated fiscal balance without social security fund was tallied at a deficit of 88.3 trillion won.
This is the second largest after 96 trillion won in August 2020. In 2020, four supplementary budgets were executed over the year, and August was the point when the 3rd supplementary budget was reflected.
The reason the deficit widened this year is also because execution of the 2nd supplementary budget began last month. In particular, the government has been fully providing consumption coupons since the end of July.
National debt is gradually increasing. As of the end of August, the balance of central government debt was 1,260.9 trillion won. That was up 20.4 trillion won from the previous month. By the end of this year, when the 1st and 2nd supplementary budgets are fully reflected, it is expected to rise to 1,301.9 trillion won.
The volume of Government Bonds issued in September was 21.5 trillion won. The September funding rate was 2.61%, up from the previous month (2.55%). The bid-to-cover ratio was 264%.
Government Bond issuance for January–September was 187.5 trillion won, which is 81.6% of the annual total issuance limit. Including retail Government Bonds, it was 188.5 trillion won.