▲ Ministry of Planning and Budget
South Korea's fiscal deficit for the first seven months of this year shrank to its smallest level in five years, driven by strong tax revenues.
According to the September issue of the "Monthly Fiscal Trends" published by the Ministry of Planning and Budget today (Sept. 11), cumulative total revenue from January to July reached KRW 456.1 trillion, an increase of KRW 71.1 trillion compared to the same period last year.
National tax revenue led the overall increase, rising by KRW 41.4 trillion from a year earlier to KRW 274 trillion.
Income tax collection increased by KRW 12.2 trillion.
This growth was driven by an increase in earned income tax resulting from higher performance bonuses and an increase in capital gains tax stemming from a rise in real estate transaction volumes.
Corporate tax rose by KRW 4.4 trillion due to improved corporate earnings, while value-added tax increased by KRW 8.1 trillion on the back of rising private consumption and import values.
Securities transaction tax grew by KRW 6.4 trillion due to an increase in stock trading values and the reinstatement of tax rates.
Special tax for rural development also increased by KRW 8.5 trillion, driven by higher KOSPI trading values.
Cumulative non-tax revenue for the January-July period stood at KRW 30.1 trillion, up KRW 9 trillion.
Fund revenue came to KRW 152 trillion, an increase of KRW 20.7 trillion.
During the same period, cumulative total expenditures rose by KRW 33.7 trillion from last year to KRW 476.2 trillion.
The consolidated fiscal balance, calculated by subtracting total expenditures from total revenue, posted a deficit of KRW 20.1 trillion.
This marks an improvement of KRW 37.4 trillion from the previous year.
The managed fiscal balance, which strips out social security funds from the consolidated balance to reflect the government's actual financial health, recorded a deficit of KRW 64.8 trillion.
This represents an improvement of KRW 22 trillion compared to last year.
The cumulative managed fiscal deficit for the January-July period is the smallest since 2021, when it stood at KRW 56.9 trillion.
As of the end of July, central government debt stood at KRW 1,354.2 trillion, an increase of KRW 15.7 trillion from the previous month.
Compared to the settlement at the end of last year, it increased by KRW 86.1 trillion.
Treasury bonds issued in August amounted to KRW 21.2 trillion.
The cumulative issuance volume from January to August reached KRW 162.3 trillion, fulfilling 72.6 percent of the total annual issuance limit.
Foreign holdings of Korea Treasury Bonds decreased by KRW 3.4 trillion in August.
(Photo provided by Ministry of Planning and Budget, Yonhap News)
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