(MENAFN) Government data released on Thursday revealed a decline in South Korea's tax revenue for the first three months of the year, primarily attributed to lower corporate earnings and household income.
According to the Ministry of Economy and Finance, tax revenue for the January-March period amounted to 84.9 trillion won (approximately 62.1 billion U.S. dollars), reflecting a decrease of 2.2 trillion won (1.6 billion dollars) compared to the same period last year. Income tax revenue notably dwindled by 700 billion won (511.7 million dollars) due to reduced household income, while revenue from value-added tax experienced growth, expanding by 3.7 trillion won (2.7 billion dollars) as a result of improvements in consumption patterns.
Corporate tax collection saw a significant decline of 5.5 trillion won (4 billion dollars) due to decreased corporate earnings during the period.
Despite the decrease in tax revenue, total revenue, including both tax and non-tax sources, saw an increase of 2.1 trillion won (1.5 billion dollars) to reach 147.5 trillion won (107.8 billion dollars) over the three-month period.
Conversely, total expenditure witnessed a notable increase, rising by 25.4 trillion won (18.6 billion dollars) to 212.2 trillion won (155.1 billion dollars).
The managed fiscal balance, excluding the social security fund, recorded a deficit of 75.3 trillion won (55 billion dollars) in the first quarter of 2024.
Furthermore, the central government's debt decreased to 1,115.5 trillion won (815.4 billion dollars) by the end of March, representing a decline of 4.9 trillion won (3.6 billion dollars) from the previous month.
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