Analysis of FY2022 Total Revenue Budget Proposal
Published on 26 October 2021
Published by Estimates and Tax Coordination Division
The ｢2022 Budget and Fund Management Plans｣ submitted this year by the government is deemed to have incorporated its policy intentions driven by a resolve to promote the development of a futuristic economic structure while maintaining the role of government finance such as its role in inclusive economic recovery and tackling polarization.
The Korean economy has been recently exhibiting signs of recovery as the nation gradually moves past the recession incurred by the COVID-19 crisis. The proposed budget for 2022 has allocated a total revenue of 548.8 trillion won, having increased by 34.2 trillion won from 2021. This figure has incorporated the anticipation that the earlier-than-expected effect of economic recovery is likely to have a positive effect on tax revenues in 2022.
This report provides a forecast of the 2022 total revenues while conducting an analysis of the tax revenues and the proposed budget for non-tax revenues in 2022. An in-depth analysis has been conducted of major issues related to the total revenue budget proposal such as economic environmental changes caused by COVID-19 and its impact on the tax revenue base; ways to reinforce tax expenditure management to overhaul tax exemption and reductions; as well as ways to enhance accuracy in the budget allocation of national tax and non-tax revenues. Next, the Tax Expenditure Budget Report and Estimation Analysis Report of Revenues Budget, which are submitted to the National Assembly together with the Budget Plan, are included in the analysis for a broader examination of the submitted supplementary documents related to the government’s tax revenue budget.