S. Korea's fiscal balance improves in Q1 on robust tax gains

By Kang Yoon-seung SEJONG, May 14 (Yonhap) -- South Korea's fiscal balance improved from a year earlier in the first three months of 2026 on robust tax gains, data showed Thursday. The managed fiscal balance, a key gauge of fiscal health calculated on stricter terms, posted a deficit of 39.4 trillion won (US$26.4 billion) in the January-March period, according to the Ministry of Planning and Budget. The reading marked an improvement of 21.7 trillion won from the same period in 2025. The budget ministry said the deficit was the smallest for the January-March period since 2020. Tax revenue reached 108.8 trillion won in the January-March period, up 15.5 trillion won from a year earlier. Income tax collection rose 4.7 trillion won from a year earlier due to higher bonuses paid to wage earners and an increase in property transactions. Corporate tax collection increased 900 billion won on robust corporate earnings. Securities transaction tax revenue rose 2 trillion won in the period amid the stock market's recent bullish run, the ministry added. Non-tax revenue and fund revenue increased 5.8 trillion won and 7.5 trillion won, respectively, from a year earlier. Total government expenditures amounted to 211.6 trillion won in the January-March period, up 1.7 trillion won from the same period last year. As of the end of March, the central government's outstanding debt stood at 1,303 trillion won, down 9 trillion won from a month earlier.