November 03, 2021 13:21
The annual interest on national debt will exceed W20 trillion in two years' time, the National Assembly Budget Office warned Tuesday (US$1=W1,176).
According to the office's financial forecasts, the interest on the national debt will increase from W17.9 trillion this year to W21.2 trillion in 2023 if the government continues to expand fiscal spending. It will double to W36.4 trillion by 2030.
The national debt is expected to swell from W965.9 trillion this year to W1,072.6 trillion next year and surpass W2,000 trillion by 2029. Per capita national debt will therefore balloon from W18.6 million this year to W42.3 million by 2030.
The office said either spending must be curtailed or tax revenues increased to reduce the national debt.
"The national debt is growing fast, and politicians seem to find spending borrowed money too easy," said Prof. Hong Ki-yong of Incheon National University. "We need to lay a legal framework for prudent management of the national coffers."
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