South Korea's fiscal deficit shrank in the first half from a year earlier as the economic recovery helped boost the government's tax revenue, the finance ministry said Friday.

   The consolidated fiscal account, which reflects the central government's total income and expenditures, posted a 2.3 trillion won (US$2.1 billion) deficit during the January-June period, down about 9.1 trillion won from a year earlier, the ministry said.

   The shrinkage stemmed mostly from increased tax revenue buoyed by the continued economic recovery.

   The government's total income came to 154.3 trillion won, up 11.1 trillion won from a year earlier, with tax revenue growing 10.6 trillion won over the same period, the ministry said. The nation's expenditures rose to 156.7 trillion won from 154.7 trillion won.

   South Korea's economy expanded 3.8 percent on-year during the first half. The government earlier expected the economy to grow 4.5 percent for the year.

   During the first half, the government spent 56.1 percent of its annual budget, lower than 58.5 percent tallied during the same period a year earlier, the report showed.

Source: Yonhap News (August 26, 2011)