Manila:South Korea's fiscal balance showed improvement from a year ago during the January to August period, driven by strong tax revenue growth attributed to higher incomes and increased home transactions, as reported by the budget ministry on Thursday.

According to Yonhap News Agency, the managed fiscal balance, which is considered a key indicator of fiscal health under stricter criteria, recorded a deficit of 43 trillion won (US$32 billion) by the end of August. This marks an improvement of 45.3 trillion won from the same timeframe in 2025.

Tax revenue for the January-August period reached 329.9 trillion won, an increase of 69.1 trillion won compared to the previous year. Corporate tax revenue jumped by 28.2 trillion won due to robust earnings by domestic companies. Additionally, income tax revenue rose by 14.4 trillion won, fueled by bonuses from domestic companies and more home transactions. Securities transaction tax revenue increased by 7 trillion won amid higher trading volumes.

Non-tax revenue and fund revenue also saw increases, rising by 9.2 trillion won and 32 trillion won, respectively, from a year earlier. During the eight-month period, total government expenditures amounted to 524.7 trillion won, which is up by 39.3 trillion won from the previous year.

The central government's outstanding debt was recorded at 1,372.1 trillion won as of the end of August, marking an increase of 17.9 trillion won from the previous month.