(LEAD) S. Korea's fiscal deficit at smallest in 8 yrs through Aug.: budget ministry

SEOUL, Oct. 15 (Yonhap) -- South Korea's fiscal deficit contracted to the smallest amount in eight years through August, according to data released by the Ministry of Planning and Budget on Thursday. The managed fiscal balance, a key indicator of fiscal health under stricter criteria, showed a deficit of 43 trillion won (US$32 billion) at the end of August, marking a 45.3 trillion won decrease from the same period in 2025. This represents the lowest deficit since a figure of 12 trillion won during the same period in 2018.

Tax revenue grew significantly, reaching 329.9 trillion won during the January-August period, a rise of 69.1 trillion won compared to the previous year. Corporate tax revenue increased by 28.2 trillion won, fueled by robust earnings among domestic companies. Income tax revenue grew by 14.4 trillion won, primarily due to bonuses paid by domestic companies and a surge in home transactions.

Securities transaction tax revenue climbed by 7 trillion won, reflecting higher trading volume in the market. Revenue from non-tax sources and fund revenue also saw increases of 9.2 trillion won and 32 trillion won, respectively, year-over-year.

Total government expenditures for the eight-month period amounted to 524.7 trillion won, up 39.3 trillion won from the prior year. As of the end of August, the central government's outstanding debt stood at 1,372.1 trillion won, a 17.9 trillion won increase from the previous month.