SEOUL, Aug. 14 (Korea Bizwire) — South Korea’s fiscal deficit surpassed 100 trillion won (US$73.51 billion) during the first half of 2024 amid weak corporate performances and rising state expenditures, data showed Wednesday.
The managed fiscal balance, a key gauge of fiscal health calculated on a stricter term, posted a deficit of 103.4 trillion won in the January-June period, larger than the shortfall of 83 trillion won a year earlier, according to the finance ministry.
This year’s figure was the second largest ever for any cited period. The shortfall hit an all-time high of 110.5 trillion won in 2020, when the country was reeling from the COVID-19 pandemic.
The government earlier expected this year’s fiscal deficit to come to 91 trillion won.
The total revenue fell by 300 billion won on-year to 296 trillion won in the first half, as tax revenue dropped 10 trillion won to 168.6 trillion won due to the sharp decline in the government’s collection of corporate taxes as a result of their weak performances.
Total expenditures went up by 20.3 trillion won on-year to 317.9 trillion won as the government spent more on various welfare programs.
The central government’s debt reached 1,145.9 trillion won as of end-June, down 900 billion won from a month earlier, the data showed.
(Yonhap)
