South Korea’s fiscal deficit significantly widened in the first eight months of 2024, as reported by the Korean finance ministry. The managed fiscal balance, which serves as a crucial indicator of fiscal health calculated under stricter criteria, recorded a deficit of 84.2 trillion won ($62.43 billion) from January to August. This marks an increase from the shortfall of 65.8 trillion won during the same period last year.
As reported by South Korea’s News Agency (Yonhap), the finance ministry noted that this year’s deficit is the third-largest ever for the specified timeframe, following a record high of 98.1 trillion won in 2020, attributed to government cash handouts for individuals affected by the COVID-19 pandemic.
Total revenue rose by 2.3 trillion won ($1.7 billion) year-on-year, reaching 396.7 trillion won in the same period, primarily driven by an increase in nontax income.
However, tax revenue declined by 9.4 trillion won to 232.2 trillion won, largely due to a significant drop in corporate tax collections amid weaker corporate performance.
By the end of August, the government’s debt had climbed to 1,167.3 trillion won, an increase of 8 trillion won from the previous month, according to the data.
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