Narat debt is 850 trillion won? 2,000 trillion?… ‘National debt + potential debt = national debt’ | yunhap news

(Sejong = Yonhap News) Reporter Bobae Lee = How much debt is the Korean government owed?

According to the Ministry of Strategy and Finance on the 6th, as of the end of last year, Korea’s’national debt’ was 84.49 trillion won. It is the value of the central government debt of 819 trillion won plus the provisional local government debt of 27 trillion won.

The ratio of national debt to gross domestic product (GDP) was 44.0% last year, up 6.3 percentage points from 2019 (37.7%).

As a result of reflecting 1267 trillion won of non-determined government debt, the total amount of’national debt’ was recorded at 198.5 trillion won.

Unconfirmed government bonds include pension provision liabilities (144.4 trillion won), other provisions such as guarantees and insurance (58 trillion won), and housing and city fund subscription savings (83.4 trillion won).

In this way,’state debt’ and’state debt’, which refer to the debt that the government has to pay off, are different concepts.

State debt is a debt that the central and local governments must pay.

This is the government’s direct repayment obligations, such as government bonds, borrowings, etc.

On the other hand,’national debt’ is a broader concept of the state debt plus the potential debt of the four major pensions and the debt of public corporations in the future.

In other words, state debt includes non-determined liabilities such as pension provision liabilities that are not included in the state debt. Here, the pension provision is the amount estimated by calculating the pension amount that the state should pay in the future, such as the pension for civil servants and military personnel, as the present value.

In addition, the amount of loans and bonds issued by public institution management funds (21) are reflected and counted.

Liabilities in the accrual-based financial statements have a wider range of recognition, including deposits and accounts payable, which are not included in the cash-based national debt.

The difference is that in the case of national debt, transactions with public institution management funds or own government bonds are also recognized as debts, whereas national debt excludes internal transactions such as central government accounting and funds and public institution management funds, and internal transactions such as own government and public bonds. .

State debt (D1), which is used to compare fiscal soundness between countries, such as the International Monetary Fund (IMF), includes only defined liabilities and excludes non-confirmed liabilities.

Because of this difference, the Ministry of Information and Communication explains that it is not appropriate to describe the debt in the national financial statements as a’narat debt’.

The Ministry of Finance said, “The debt in the national financial statements includes both the debt that must be paid by the people’s tax and unconfirmed government bonds that are not.” It is not an unconfirmed government bond.”

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2021/04/06 15:23 sent