It has been revealed that short-term borrowings that메이저사이트 the government borrowed from the Bank of Korea this year to make up for the shortfall in tax revenue have exceeded 100 trillion won. Government borrowings are growing at the fastest pace since the Bank of Korea computerized related statistics, and the interest paid by the government to the Bank of Korea this year has already hit an all-time high on an annual basis.
Looking at the ‘statement of temporary loans and interest amounts submitted by the Bank of Korea to Rep. Yang Kyung-sook (Democratic Party of Korea) on the 14th, the cumulative amount of government temporary loans from January to July this year is 100.8 trillion won. This is the highest in 13 years from January to July since 2010, when the Bank of Korea started recording the government’s monthly lump sum loan statistics in its computer. It is close to three times the cumulative amount of temporary loans last year (34.2 trillion won). In addition, the interest paid by the government to the Bank of Korea from the beginning of this year until the end of June was 114.1 billion won, far exceeding the previous year’s maximum of 47.1 billion won in 2020.
The BOK’s annual cumulative amount of government temporary loans was the highest at 102.9 trillion won in 2020, when the Corona 19 pandemic broke out, but the cumulative amount from January to July of that year (90.5 trillion won) was less than this year. In addition, in 2020, the government overhauled its financial management base with a large-scale supplementary budget of 66.8 trillion won, while this year, it seems to be making up for the snowballing tax revenue deficit with short-term funds temporarily loaned by the central bank.
The government can utilize the Bank of Korea’s temporary loan system based on the National Treasury Fund Management Act and the Bank of Korea Act to solve the temporary lack of funds due to the time lag between income (tax revenue) and expenditure (appropriation). Funds raised must be repaid with the revenues of the fiscal year. However, since the government’s indiscriminate use of funds from the Bank of Korea can threaten the root of monetary policy, strict restrictions follow.
In fact, the Bank of Korea Monetary Policy Committee’s resolution on January 12 this year stipulates various additional conditions in the ‘Limit and Conditions of Temporary Loans to the Government’. The Bank of Korea increased the temporary loan limit from 45 trillion won to 50 trillion won, but ‘the government should actively try to raise temporary shortfall funds through the issuance of treasury securities (government bonds) before borrowing from the central bank in accordance with the Treasury Fund Management Act’, ‘the government We must be careful not to use temporary borrowing from the Bank of Korea as a basic means of raising funds for shortages.’ The government has repeated borrowing and repaying loans to the extent that the BOK loan balance does not exceed 50 trillion won until July of this year.
Rep. Yang Kyung-sook said, “The fact that the government has already borrowed more than 100 trillion won from the Bank of Korea, even though it is not a special situation like the Corona 19 crisis, is proof that there are many problems in fiscal management.” In that case, it could lead to a chronic financial crisis.”