The national budget deficit for the second quarter has dropped below 85 trillion won, marking the lowest figure for June since 2023. This improvement is attributed to increased securities transaction and corporate taxes, driven by a strong semiconductor market and a revitalized stock market.
According to the 'Monthly Fiscal Trends for August' report released by the Ministry of Strategy and Finance on August 13, the management fiscal balance recorded a deficit of 84.4 trillion won as of the end of June. This represents an improvement of 9.9 trillion won compared to the same period last year.
The 'management fiscal balance,' which excludes social security fund revenues from the consolidated fiscal balance, reflects the government's actual financial status. The consolidated fiscal balance showed a deficit of 43.9 trillion won for the second quarter, while the social security fund recorded a surplus of 40.5 trillion won. This marks the smallest deficit for the consolidated fiscal balance since 2019 and for the management fiscal balance since 2023.
Total revenue for the second quarter reached 381.9 trillion won, an increase of 61.3 trillion won compared to the same period last year. This growth is attributed to a rise in national tax revenue (33 trillion won) as well as increases in non-tax revenue (9 trillion won) and fund revenue (19.3 trillion won).
National tax revenue increased to 223 trillion won, driven by the strong stock market and semiconductor sector. Income tax (10.4 trillion won), securities transaction tax (5.2 trillion won), value-added tax (4.9 trillion won), and corporate tax (4.3 trillion won) all saw significant increases.
Non-tax revenue rose by 9 trillion won compared to the previous year, totaling 28.4 trillion won, while fund revenue reached 130.6 trillion won, an increase of 19.3 trillion won from a year earlier. A Ministry official noted, "With the corporate tax interim payment scheduled for August, we expect a temporary improvement in the figures at that time."
As of the end of June, cumulative total expenditures amounted to 425.8 trillion won, an increase of 36.6 trillion won compared to the same period last year. Key factors contributing to the rise in fiscal expenditures include support for health insurance finances and compensation for high oil prices.
The central government's debt balance stood at 1,338.5 trillion won at the end of June, a decrease of 6.8 trillion won from the previous month. A Ministry official explained, "Typically, at the end of the second quarter, the amount of government bond repayments exceeds the amount issued, leading to a decrease in the debt balance."
The total revenue progress rate is 54.5%, an improvement of 4.2 percentage points compared to the same period last year. Notably, the progress rate for non-tax revenue increased by 13.5 percentage points, driving the overall growth rate.
* This article has been translated by AI.
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