South Korea’s fiscal deficit shrinks year-on-year

South Korea’s fiscal deficit declined on an annual basis in the first seven months of 2023, as the government cut pandemic-related expenditures.
According to data released by the Korean Ministry of economy and Finance on Thursday, the managed fiscal balance, a key measure of financial health calculated on a more rigorous basis, recorded a deficit of 67.9 trillion won (51.1 billion U.S. dollars) in July, compared with 86.8 trillion won a year earlier.
The Korean news agency “Yonhap” reported that South Korea’s tax revenues amounted to 217.6 trillion won during the said period, a decrease of 43.4 trillion won Year-on-year, due to a decrease in the amount of income and corporate taxes collected.
Total revenue was 353.4 trillion won in the January-July period, down 40.7 trillion won Year-on-year.
The total expenditure reached 391.2 trillion won during this period, a decrease of 59.1 trillion won Year-on-year, as the government spent less on pandemic-related projects.. While government debt reached 1,097.8 trillion won in July, up 14.5 trillion won Year-on-year.