Last years state debt smaller than forecast
By Kang Seung-woo Korea’s state debt rose more than 30 trillion won ($27.6 billion) last year from 2009 as the government borrowed to meet its budget deficit, the finance ministry said Tuesday. According to a report by the Ministry of Strategy and Finance, the state debt including central and local government borrowing amounted to 392.8 trillion won last year, up 33.2 trillion won from the previous year. The figure was 14 trillion won smaller than the 407.2 trillion won forecast in the government’s budget for 2010. Central government borrowing of 27.7 trillion pushed the debt to 373.8 trillion won, to which local governments added 19 trillion won. The final numbers will be available at the end of June. The ministry attributed the increase to growing issuance of government bonds aimed at filling the gap in government spending. Despite the debt growth, the ratio of national debt to gross domestic product (GDP) decreased 0.3 percentage point to 33.5 percent. “Thanks to a faster-than-expected economic recovery, the GDP growth picked up, while tax revenue increased
