Korea's Fiscal Deficit Expands in April Compared to Previous Year
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Loading... - Kulap Chaichana
- 15 Jun 2023
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Amidst economic uncertainties, data reported Thursday June 15th reveals that Korea's fiscal deficit has grown in the first four months of 2023 compared to the same period last year.
According to the finance ministry, the managed fiscal balance, which is a crucial indicator of fiscal health calculated under stricter terms, recorded a deficit of 45.5 trillion won during the January-April period. This deficit is larger than the 37.9 trillion won shortfall reported in the previous year.
During the mentioned period, Korea's tax revenue amounted to 134 trillion won, experiencing a year-on-year decline of 33.9 trillion won. The decrease can be attributed to the slump in the property market, which led to a reduction in capital gains tax revenue.
Total revenue for the January-April period dropped to 211.8 trillion won, reflecting a year-on-year decrease of 34.1 trillion won.
However, total expenditures reached 240.8 trillion won, indicating a decline of 26.5 trillion won compared to the previous year. This reduction is a result of the government's scaled-back spending related to the pandemic.
Moreover, recent data shows that the government's debt stood at 1,072.7 trillion won as of April, marking an increase of 19.1 trillion won from the previous month.
