The country’s fiscal deficit exceeded 100 trillion won ($73.51 billion) in the first half of the year, driven by a fall in corporate taxes that largely make up the government’s entire tax revenue, according to the Ministry of Economy and Finance, Wednesday.
The ministry attributed the deficit to having front-loaded nearly 50 percent of its annual spending in the first six months, while its accumulated income decreased by 300 billion won during the same period.
In a monthly report, the ministry said the managed fiscal balance posted a deficit of 103.4 trillion won in the January to June period.
A key measure of fiscal health, the managed fiscal balance exceeded the shortfall of 83 trillion won seen a year earlier, according to a stricter assessment.
This year’s figure was also the second largest ever for any cited period.
The shortfall hit an all-time high of 110.5 trillion 한국을 won in 2020 when the country was stricken by the COVID-19 pandemic.
The ministry previously estimated this year’s entire fiscal deficit at 91 trillion won.
During the January to June period, tax revenue dropped 10 trillion won year-on-year to 168.6 trillion won as companies in general struggled with sluggish performances, and corporate taxes declined as a result.
In return, the government’s entire revenue fell by 300 billion won year-on-year to 296 trillion won in the first half.
In contrast, total expenditures increased by 20.3 trillion won year-on-year to 317.9 trillion won as the government spent more to boost economic recovery in the first half.
