The national balance posted a deficit of 84.4 trillion won in January–June this year. It was the smallest shortfall in three years. The fiscal balance improved as tax revenue, including income tax and security transaction tax, rose sharply.
According to the Monthly fiscal trends August issue released by the Ministry of Planning and Budget on the 13th, the consolidated fiscal balance without social security fund recorded a deficit of 84.4 trillion won in January–June. The shortfall narrowed by 9.9 trillion won from a year earlier (-94.3 trillion won). The cumulative deficit during this period was the smallest since January–June 2023 (an 83 trillion won deficit).
The consolidated fiscal balance without social security fund shows the country's practical public finances. It is calculated by subtracting the scale of the four major social security funds, including the National Pension and employment insurance, from the consolidated fiscal balance, which is total revenue minus total expenditure.
A rise in tax revenue largely boosted total revenue. Total revenue for January–June this year was 381.9 trillion won, up 19.1% (61.3 trillion won) from a year earlier. Of total revenue, national tax receipts came to 223 trillion won, up 17.4% (33 trillion won) year over year. That was 53.7% of this year's budgeted amount, 2.6 percentage points higher than the progress rate a year earlier. Income tax came to 10.4 trillion won, the security transaction tax to 5.2 trillion won, and corporate tax to 4.3 trillion won. During the same period, total expenditure rose 9.4% (36.6 trillion won) to 425.8 trillion won.
A Ministry of Planning and Budget official said, "Unlike last year, when funds to support National Health Insurance finances were allocated in the second half, this year they were allocated in May–June, and expenditure increased in tandem with the grant-in-aid (earmarked tax) for educational finance, but the increase in total revenue, including income tax and corporate tax, was larger."
Government debt also declined. As of the end of June, central government debt stood at 1,338.5 trillion won, down 0.5% (6.8 trillion won) from a month earlier. Compared with the end of last year, it was up 70.3 trillion won.