South Korea’s fiscal deficit narrowed during the first seven months of this year as the government is seeking to achieve a balanced budget amid worries that fiscal debt could weigh on the nation’s growth potential, the Finance Ministry said Wednesday.

According to the ministry, the nation’s fiscal deficit excluding welfare and public fund operations came to 11.9 trillion won ($10 billion) during the January-July period, down 9 trillion won from the same period a year earlier.

The reduction comes as the government pushes to balance the budget by 2013, one year ahead of its earlier target, as fiscal debt is feared to weigh on the overall economic growth potential down the road.

Last month, the finance ministry announced that it will restrict its fiscal deficit to under 25 trillion won this year and 14.3 trillion won next year before achieving a balanced budget in 2013. 

(Yonhap News)