S. Korea’s fiscal deficit further widens through July

South Korea's fiscal deficit grew markedly during the first seven months of 2024 amid weak corporate performances and growing state expenditures, the finance ministry said Thursday. The managed fiscal balance, a key gauge of fiscal health calculated on a stricter term, posted a deficit of 83.2 trillion won (US$62 billion) in the January-July period, larger than the shortfall of 67.9 trillion won a year earlier, according to the finance ministry. This year's tally was the third-largest figure ever for any cited period. The shortfall hit an all-time high of 98.1 trillion won in 2020 due to the government's cash handouts for people hit by the COVID-19 pandemic. The total revenue went up by 3.9 trillion won on-year to 357.2 trillion won during the cited period this year, led by the increase in nontax income. But tax revenue fell 8.8 percent to 208.8 trillion won due to the sharp decrease in the government's collection of corporate taxes on their weak performances. Total expenditures went up by 18.3 trillion won on-year to 409.5 trillion won as the government spent more on various welfare programs, according to the ministry. The government's debt had reached 1,159.3 trillion won as of end-July, up 13.4 trillion won from a month earlier, the data showed. Source: Yonhap News Agency