The Ministry of Planning and Budget said on the 9th that the national budget deficit for January–May this year was 5.4212 trillion won, a slight decrease from a year earlier. Tax revenue rose sharply, but the deficit did not improve much as expenditure increased, including payouts of support funds for high oil prices.
According to the Monthly Fiscal Trends July issue released by the Ministry of Planning and Budget on the 11th, the consolidated fiscal balance without social security fund recorded a deficit of 5.4212 trillion won in January–May. That is almost the same level as the deficit in the same period last year (5.42188 trillion won).
The consolidated fiscal balance without social security fund reflects the country's actual finances. It is calculated by subtracting the four major social security funds, including the National Pension and employment insurance, from the consolidated fiscal balance, which is total revenue minus total expenditure.
While tax receipts were strong this year, increasing total revenue, expenditure also rose sharply. Total revenue for January–May was 330 trillion won, up 18% (50.2 trillion won) from a year earlier. Over the same period, total expenditure was 353.3 trillion won, up 12% (38.1 trillion won) from the same period a year earlier.
An official at the Ministry of Planning and Budget said, "Total revenue increased, but expenditure rose as about 4.7 trillion won in support funds for high oil prices was intensively executed in May, keeping the balance similar to a year earlier."
Government debt continued to grow. As of the end of May, central government debt was 1,345.2 trillion won, up 23.6 trillion won from the previous month.