"The rate of increase in the national debt is very fast...you need to be vigilant about fiscal soundness"

The head of the National Research Institute has suggested that the government should take measures to manage mid- to long-term fiscal soundness amid a surge in national debt due to the recent supplementary budget formation.

Kim Jae-jin, head of the Korea Institute of Taxation and Finance, said in the opening column of the January issue of the 'Financial Forum' published today (28th), "The current level of national debt in Korea is not relatively high, but the rate of increase is very fast. should have,” he pointed out.

Director Kim said, "According to the International Monetary Fund (IMF) projections, Korea's general government national debt ratio will rise to 66.7 percent of gross domestic product (GDP) by the end of 2026. explained.

He emphasized, "The rate of increase in government debt in Korea from 2011 to 2020 is an average of 9.4% per year, which is very high compared to the world (5.7%) and developed countries (4.7%)."

He added, "The new government, which will be launched amidst the accumulated fatigue and chaos caused by COVID-19, will take on the heavy responsibility of restoring the vitality of the stagnant economy and resolving the problems of financial deterioration and polarization."