Posted April. 09, 2010 05:26,
The combined debts of the central, municipal and provincial governments this year are expected to reach 390 trillion won (347 billion U.S. dollars), about 15 trillion won (13.3 billion dollars) less than expected.
This is largely because of the reduced national debt last year and higher revenue thanks to economic recovery. Experts, however, still warn of a rapid increase in the national debt.
Based on its 2009 annual report, the Strategy and Finance Ministry estimated this years national debt at a little more than 390 trillion won (347 billion dollars), down from the forecast of 407.1 trillion won (357.3 billion dollars) made in September last year, when the ministry formulated its financial management plan.
Last years national debt of 359.6 trillion won (319.9 billion dollars) was 6.4 trillion won (5.69 billion dollars) more than the prediction, so the tentative estimate for this years will fall to 400.7 trillion won (356.4 billion dollars).
The government will use 1.4 trillion won (1.25 billion dollars) of the surplus to repay the national debt, so the estimated national debt for this year will further drop to 399.3 trillion won (355.2 billion dollars).
Because of the transfer of the budget surplus to tax revenues this year, additional tax revenues thanks to economic recovery, and reduced issuance of exchange stabilization fund bonds, the national debt could drop further to around 392 trillion won (348.7 billion dollars).