The government’s tax collection increased during the first seven months of the year as continuing economic recovery and rising real estate prices pushed up spending.
The government has proposed a budget of a record 604.4 trillion won ($520 billion), an 8.3 percent increase from this year’s original budget, excluding the sum of supplementary budgets. It is the first time the original budget...
Household income fell 0.7 percent on year in the second quarter to 4.29 million won ($3,600), mainly as a result of the high level of government payments in the same period in 2020.
According to Statistics Korea on Monday, service industries grew 5.7 percent in the second quarter, including wholesale businesses, retail, finance and the logistics and storage industry.
Overall online credit card purchase were up 35 percent in 2020, according to Hana Institute of Finance on Wednesday.
Tax collections in the first four months of 2021 were up 32.5 percent on year, giving the government the wiggle room to pass a supplementary budget without selling more debt.
President Moon Jae-in has decided to keep the current expansionary fiscal policy through next year until the economy recovers. This year, the budget expanded 8.9 percent compared to 2020.
According to the official statistics agency on Thursday, average household spending per month in 2020 was 2.4 million won ($2,150), a 2.3 percent drop compared to 2019. When adjusting for inflation, it was a 2.8 percent decline.
Tax collections in the first two months rose 25 percent thanks to robust real estate transactions.
According to the Ministry of Economy and Finance on Tuesday, national liabilities in 2020 hit 1,985 trillion won ($ 1,772.9 billon). This is a 13.8 percent on year increase. In 2020, the gross domestic product was 1,924 trillion won.