Seoul: South Korea's fiscal balance showed improvement in the first four months of 2026 compared to the previous year, driven by significant growth in tax revenue, data revealed Thursday. The managed fiscal balance, an important indicator of fiscal health calculated under stricter criteria, recorded a deficit of 36.6 trillion won (US$23.9 billion) by the end of April, according to the Ministry of Planning and Budget. This represents an improvement of 9.5 trillion won from the same period in 2025.

According to Yonhap News Agency, tax revenue reached 164.1 trillion won in the January-April period, an increase of 21.9 trillion won from a year earlier. The growth was primarily attributed to enhanced corporate earnings, as reported by the ministry. Income tax revenue amounted to 44.7 trillion won through April, marking an increase of 5.9 trillion won from the previous year. Corporate tax revenue totaled 39 trillion won, which is an increase of 3.2 trillion won over the period.

The ministry also indicated that revenue from the securities transaction tax rose by 3.1 trillion won amid the stock market's recent positive trend, reaching 4.1 trillion won. Additionally, non-tax revenue and fund revenue saw increases of 7.9 trillion won and 11.5 trillion won, respectively, from a year earlier. Total government expenditures for the January-April period were 285.6 trillion won, up by 23.3 trillion won from the same period last year.

As of the end of April, the central government's outstanding debt stood at 1,321.7 trillion won, an increase of 18.2 trillion won from the previous month.