FY 2005 Consolidated Fiscal Balance
Adjusted fiscal balance*, namely fiscal balance for administration, recorded a deficit of 6.5 trillion won or 0.8 percent of GDP with an on-year 2.5 trillion won decrease. The surplus in social security fund including National Pension Fund, Korea Teachers' Pension, Employment Insurance Fund, Industrial Workers' Accident Compensation Fund and Merit Reward Fund, is excluded as it cannot be considered as outcome of fiscal activity. The KAMCO-KDIC Conversion** is also excluded in settling FY 2005 consolidated fiscal balance to avoid the double-entry problem, as the entire package of KAMCO-KDIC conversion had been recorded and registered as expenditure in the book at the time of such public fund injection years earlier.
* referring to 'consolidated fiscal balance' after eliminating social security fund balance (a 23.6 trillion won surplus) and KAMCO-KDIC Conversion** (principal amount of 12.0 trillion won)
** the share of governmental liabilities on guaranties claimable by the Korea Asset Management Corporation (KAMCO) and the Korea Deposit Insurance Corporation (KDIC) that resulted in the conversion into government bonds.
In 2002, under the grand redemption plan for total KRW 49 trillion won liability on guaranties, a progressive conversion schedule was adopted such that the total of KRW 49 trillion of the KDIC and KAMCO bonds maturing in the next four years are converted into government treasury bonds, with 13 trillion won in 2003 and 12 trillion won annually during 2004 through 2006.
The consolidated financial balance stayed at the same level of 2004 despite a slight rise of a deficit in the adjusted balance. This is attributable to the front-loading budget spending and the revised supplementary budget in 2005, as in the case of 2004, for the purpose of boosting the economy.
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2008년 10월 6일 16:30
