Seoul: South Korea's fiscal deficit reached over 86 trillion won (US$61.9 billion) in the first seven months of the year, the finance ministry said Thursday. The managed fiscal balance, a key gauge of fiscal health calculated on stricter terms, posted a deficit of 86.8 trillion won in the cited period, according to data from the Ministry of Economy and Finance. The figure marks the third largest on record for the period following 2020 and 2022.
According to Yonhap News Agency, in July alone, revenues exceeded expenditures, resulting in a managed fiscal surplus of 7.5 trillion won. A ministry official noted this as an improvement from a deficit of 94.3 trillion won posted in the January-June period. Total revenue added 27.8 trillion won on-year to 385 trillion won in the cited period, with tax revenue expanding 23.8 trillion won to 232.6 trillion won.
Total expenditures increased 33 trillion won on-year to 442.5 trillion won. The government earlier projected the shortfall to align with the original annual target of around 111.6 trillion won toward the end of the year.