The Korea Herald

지나쌤

S. Korea's fiscal deficit narrows on-year through May

By Yonhap

Published : July 13, 2023 - 10:13

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This undated photo shows the exterior of the ministry building in the central administrative city of Sejong. (Ministry of Economy and Finance) This undated photo shows the exterior of the ministry building in the central administrative city of Sejong. (Ministry of Economy and Finance)

South Korea's fiscal deficit narrowed in the first five months of 2023 from a year earlier as the country cut spending on pandemic-related expenditures, data showed Thursday.

The managed fiscal balance, a key gauge of fiscal health calculated on a stricter term, posted a deficit of 52.5 trillion won ($40.9 billion) in the January-May period, compared with a shortfall of 71.2 trillion won tallied a year earlier, according to the Ministry of Economy and Finance.

South Korea's tax revenue came to 160.2 trillion won during the cited period, down 36.4 trillion won on-year due to weaker income and corporate taxes collected.

The total revenue dropped to 256.6 trillion won in the January-May period, down 37 trillion won on-year.

Total expenditures came to 287.4 trillion won over the period, as the government reduced its pandemic-related spending.

The government's debt had reached 1,088.7 trillion won as of May, up 16 trillion won from a month earlier, the data also showed. (Yonhap)