South Korea's Fiscal Health in Focus

The first quarter of this year has seen South Korea's managed fiscal balance deficit reach a staggering 61.3 trillion won, the second-largest deficit on record, closely following last year's figures. This alarming number represents 83% of the government's target based on the current year's main budget.

Revenue and Expenditure Breakdown

Tax revenue by the end of March was reported at 93.3 trillion won, an 8.4 trillion won increase from the previous year, driven by significant rises in corporate and income taxes. However, value-added tax saw a decrease. Non-tax revenue and fund income also showed positive trends, contributing to a total revenue increase of 12.5 trillion won.

On the expenditure side, the first three months recorded a total of 210 trillion won, slightly less than the previous year, with a progress rate of 31.2%. The consolidated fiscal balance highlighted a 50 trillion won deficit.

Understanding the Managed Fiscal Balance

The managed fiscal balance, excluding major social security funds, revealed a deeper deficit of 61.3 trillion won, underscoring the government's actual fiscal state. This figure is the second-highest for the March cumulative basis, with last year's first quarter being the peak.

Debt and Treasury Bonds

Central government debt saw a slight decrease to 1,175.9 trillion won by March's end. Treasury bonds issuance in April and foreign investment inflows were notable, with the total issuance from January to April reaching 41.1% of the annual limit.