Government’s Temporary Borrowing Reaches 113.6 Trillion Won, Prompting Concerns
Government officials have confirmed that the Bank of Korea granted temporary borrowing amounting to 113.6 trillion won until August of this year. This significant sum forms part of the government’s total expenditure of 153 trillion won in short-term funds, which also includes 40 trillion won from the issuance of treasury securities.
The interest on the temporary borrowing from the Bank of Korea alone reached 149.2 billion won. In addition, the interest on treasury securities amounted to 245.5 billion won. Overall, the total interest on these short-term funds reached 394.7 billion won.
This move was seen by some as a measure taken by the government to maintain fiscal stability. With the tax revenue increase rate standing at just 54.3% at the end of July and tax revenue falling short by 43.3 trillion won compared to the previous year, the government resorted to short-term borrowing to ensure smooth fiscal management.
However, concerns have been raised regarding the government’s reliance on short-term borrowing to solve existing issues related to tax revenue. Representative Han Byung-do expressed his disappointment, stating, “Relying solely on short-term borrowing to address tax revenue problems is the epitome of irresponsibility.” He emphasized the need for the government to develop comprehensive measures and reassess tax revenue estimates.
The Bank of Korea and the office of Congressman Byung-do Han were involved in the validation of this information.
Source: jhhan@yna.co.kr
(Seoul = Yonhap Infomax) Reporter Han Jong-hwa = The government’s temporary borrowing by the Bank of Korea until August this year was found to be 113.6 trillion won.
According to the office of Congressman Han Byeong-do of the Democratic Party of Korea on the 7th, it was confirmed that the government spent a total of 153 trillion won in short-term funds, including 113.6 trillion won in temporary borrowing from the Bank of Korea and 40 trillion won in the issuance of treasury securities, until August this year.
The interest on temporary borrowing from 113.6 trillion won reached 149.2 billion won.
The interest on treasury securities is 245.5 billion won, and the total interest on short-term funds is 394.7 billion won.
It is interpreted that the government borrowed short-term money for smooth fiscal management at a time when the tax revenue increase rate was only 54.3% at the end of July and tax revenue was 43.3 trillion won less than the previous year.
Representative Han Byung-do said, “Solving the tax revenue punk by relying on short-term borrowing is the lowest of the lows,” and emphasized, “The government will have to find basic measures along with results re-reg. estimate of tax revenue.”
Bank of Korea, Office of Congressman Byung-do Han
jhhan@yna.co.kr
(end)
This article was served at 08:15, 2 hours earlier on the Infomax financial information terminal.
Send articles to SNS Send articles to Facebook Send articles to Twitter Send articles to Kakao Story Send articles to Kakao Chat Send articles to Naver Band Send articles to Naver Blog Send article to Pinterest Find other shares
#government #borrowed #trillion #won #Han #Eunseo #January #August #billion #interest
