S. Korea's fiscal deficit drops in August

SEOUL, Oct. 26 (Yonhap) -- South Korea's fiscal deficit fell in August from a
month earlier as the government restrained spending in order to bolster the weak
economy for fear of a worsening fiscal soundness, the finance ministry said
Monday.
The country's cumulative fiscal deficit came to 16.34 trillion won (US$13.8
billion) as of the end of August, down 1.3 trillion won from a month earlier,
according to the Ministry of Strategy and Finance.
The August figure compared with the nation's cumulative fiscal deficit of 27.96
trillion won until the end of June. The government currently aims to keep this
year's deficit at around 22 trillion won.
It has front-loaded state budget spending in the first half of 2009 to cope with
the global financial crisis brought on by the collapse of Lehman Brothers last
year.
Buffeted by the ensuing global recession, Seoul has been striving to bolster
private consumption, business investment and exports at a time when its economy
is feared to post the first minus growth in more than a decade this year.
Additional fiscal spending, tax cuts and other stimulus measures, however, have
raised concerns that the nation's fiscal status could worsen down the road due to
growing state debts and declining tax revenues.
The government earlier said that it will try to achieve a balanced budget by its
target year of 2013-2014.
kokobj@yna.co.kr
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