President Moon Jae-in surged 50% from the previous government's budget of 400.5 trillion won in 2017 to 604 trillion won in the next five years, fixing the fiscal deficit system of 8% annual fiscal, 6% military increase, and 4% economic growth rate.
The aggressive tax increase is a 19.8% increase from this year's main budget national tax of 285 trillion won, as national tax revenue is 338.6 trillion won next year, and a 7.8% (24.4 trillion won) increase from 314.3 trillion won including the supplementary budget.
The fiscal deficit is 55.6 trillion won in the combined fiscal balance after subtracting total expenses from total revenue, and the ratio of the nominal GDP to the fiscal balance is -2.6%. In the deficit of managed finance (excluding social security funds), the chronic deficit system of 94.7 trillion won to -4.4% of GDP was strengthened.
The national debt is expected to increase by 112.3 trillion won next year, with a total of 1068.3 trillion won, 50.2% of GDP.
At the Cabinet meeting on the 31st, the government expanded Reaganomics to 604.4 trillion won, an increase of 8.3% from this year's main budget (558 trillion won), with the growth rate of total spending (8.3%) for next year being 1.6% higher than the growth rate of total revenue (6.7%).
The tax increase policy raised the maximum income tax rate from 42% to 45% last year and expanded the tax to focus on the management of the national economy.
The increase in fiscal spending supported the strengthening of the monopoly status of administrative bureaucrats and the increase in rigid expenses by injecting 216.7 trillion won in the health, welfare, and employment budget in the form of creating 2.11 million jobs from 83.5 trillion won in response to polarization to 31 trillion won.
Fiscal expenditure increases from 2018 (increase rate of 7.1%) to 2019 (9.5%), 2020 (9.1%), 2021 (8.9%) and 2022 (8.3%), with an average growth rate of 8.6% over the five years.
As for the military increase, the defense budget increased by 4.5% from this year's main budget to 55.227.7 trillion won, and the military power operation cost increased by 5.7% to 37,891.2 billion won.
The government extended the 4.2% economic growth rate and GDP forecast for this year to 2023.1 trillion won for the 604 trillion won expansion budget, and suggested an increase of 2104.7 trillion won in 2022.
In confirming the budget on the same day, President Moon said, "In the midst of an unprecedented crisis, our government is accelerating overcoming the national crisis and transforming the leading economy through an expansionary fiscal policy. did," he said.