Fiscal Deficit of South Korea Decreases in the First Half of 2023

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On Thursday, the Ministry of Economy and Finance of South Korea reported that the country’s fiscal deficit had narrowed on-year in the first six months of 2023. The managed fiscal balance, a key indicator of fiscal health, showed a deficit of 83 trillion won (US$63.9 billion) from January to June, compared to the 101.9 trillion won of the same period in the previous year.

Tax revenue for the period was 178.5 trillion won, a decrease of 39.7 trillion won from the same period a year ago, due to lower income and corporate taxes collected. The total revenue also dropped to 296.2 trillion won, down 38.1 trillion won year-on-year.

Total expenditures for the period amounted to 351.7 trillion won, a decrease of 57.7 trillion won from the same period in 2022, as the government spent less on pandemic-related projects. The government’s debt had reached 1,083.4 trillion won as of June, down 5.3 trillion won year-on-year.

This undated file photo provided by the Ministry of Economy and Finance shows its headquarters in the central city of Sejong. (PHOTO NOT FOR SALE) (Yonhap)

colin@yna.co.kr
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