South Korea’s fiscal deficit reached 67-point-9 trillion won, or 51-point-2 billion U.S. dollars in the first seven months of 2023, exceeding the annual deficit forecast.

According to the Ministry of Strategy and Finance on Thursday, while the total expenditures decreased significantly, much of the deficit was due to lower tax revenue. The recorded figures show an on-year decline of some 43 trillion won or around 32-point-4 billion U.S. dollars.

However, compared to the previous month, the deficit decreased by 15 trillion won, or 11-point-3 billion U.S. dollars, showing some signs of improvement.

As of July, the government’s total revenue recorded 353-point-4 trillion won, a decrease of 40-point-7 trillion won compared to the same period a year ago.

Based on the three major taxes of income, corporate and value-added tax, the National tax revenue stood at 217-point-7 trillion won, which is 43-point-4 trillion won less than the previous year.