Photo = Getty Image Bank
In the aftermath of the novel coronavirus infection (Corona 19), last year’s national tax revenue fell from the previous year, recording a decline for the first two consecutive years. On the other hand, from January to November last year, total government spending increased from the same period last year.
According to the February 2021 fiscal trend of the Ministry of Strategy and Finance on the 9th, last year’s national tax revenue was 28.5 trillion won, down 7.900 trillion won from the previous year. The tax revenue in 2019 also decreased by 116.1 billion won from the previous year. This is the first time that tax revenues have declined for the second consecutive year.
Last year’s tax decline was the largest ever. The national tax decreased by 2.4 trillion won from the previous year in 1998, during the financial crisis of the International Monetary Fund (IMF). In 2009, during the financial crisis, and 2013, during the eurozone fiscal crisis, they decreased by 2,7653 trillion won and 1,1084 trillion won respectively from the previous year.
By tax category, last year’s corporate tax decreased by 16.7 trillion won from the previous year, the largest decrease. Value-added taxes (-5.900 trillion won), tariffs (-800 billion won) and transportation taxes (-600 billion won) have also decreased. Income tax increased by 9.5 trillion won from the previous year due to the increase in real estate transaction volume and the increase in the number of regular workers.
On the other hand, from January to November last year, the total government expenditure was 501.1 trillion won, an increase of 57.8 trillion won from the same period last year.
As the incoming money decreases and the outgoing money increases, a financial’punk’ is inevitable. Last year’s fiscal deficit is expected to exceed 100 trillion won. Until last November, the administrative fiscal balance recorded a deficit of 98.3 trillion won. The consolidated fiscal balance is in the red of 63,000 trillion won. The consolidated fiscal balance is the total national income minus the total expenditure, and the managed fiscal balance is excluding various social security funds.
As of the end of last year, the fiscal balance and national debt are scheduled to be disclosed in early April after collecting and analyzing the fund.
Reporter Eun-seo Koo [email protected]
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