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 more than projected,” the ministry said.
The report said that the nation’s per capita individual debt reached 8.03 million won, compared with the preceding year’s 7.38 million won.
Last year, the government’s gross revenue including taxes and other earnings stood at 261.2 trillion won, just down from 261.3 trillion won the previous year, while its gross expenditure was 248.7 trillion won, 3.5 percent lower than 2009, it said.
Meanwhile, the government posted a 29.7 trillion won surplus in its consolidated fiscal account, but without the results of social welfare fund operation ― it tallied about 13 trillion won in fiscal deficits last year.
The ministry said that the settlement of accounts report will be forwarded to the Board of Audit and Inspection for further review before being sent to the National Assembly by the end of May for final approval.