S. Korea’s fiscal deficit further widens through August

South Korea's fiscal deficit grew markedly during the first eight months of 2024 amid weak corporate performances, the finance ministry said Thursday. The managed fiscal balance, a key gauge of fiscal health calculated on stricter terms, posted a deficit of 84.2 trillion won (US$62.43 billion) in the January-August period, larger than the shortfall of 65.8 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. Total revenue went up by 2.3 trillion won on-year to 396.7 trillion won during the cited period this year, led by an increase in nontax income. But tax revenue fell 9.4 trillion won to 232.2 trillion won due to the sharp decrease in the government's collection of corporate taxes on their weak performances. Total expenditure went up by 21.3 trillion won on-year to 447 trillion won as the government spent more on various welfare programs, according to the ministry. The government's debt had reached 1,167.3 trillion won as of end-August, up 8 trillion won from a month earlier, the data showed. Source: Yonhap News Agency