S. Korea's Fiscal Deficit Rises to 84 Trillion Won through August

Photo : YONHAP News

The nation’s fiscal deficit widened to more than 84 trillion won, or 62.3 billion U.S. dollars, through August this year due to a steep decline in corporate tax revenue. 

According to the finance ministry on Thursday, the nation’s managed fiscal balance posted a deficit of 84-point-two trillion won in the January-August period.

That’s the third-largest shortfall for the period, with the deficit increasing by 18-point-two trillion won from the same period last year. 

The managed fiscal balance, a measure of the government’s actual fiscal status, is calculated by subtracting the balance of the four major social security funds, including the national pension, from the consolidated fiscal balance.

Total revenue came to 396-point-seven trillion won during the period, up two-point-three trillion won from the same period last year, but tax revenue slipped nine-point-four trillion won to 232-point-two trillion won due to a sharp fall in corporate tax revenue. 

Total expenditures amounted to 447 trillion won during the period, up 21-point-three trillion won on-year.

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