Korea's fiscal deficit widened during the first half of this year due to increased budget spending to bolster the economy, the finance ministry said Friday.
The consolidated fiscal account, which reflects the central government's total income and expenditure, posted 11.5 trillion won ($10.1 billion) in deficit during the January-June period, compared with a deficit of 2.3 trillion won a year earlier, the ministry said.
The increase stemmed mostly from a sharp rise in consolidated fiscal expenditure as the government front-loaded this year's budget to bolster economic growth. The expenditure increased 17.9 trillion won to 174.6 trillion won, the ministry said.
The fiscal account, excluding social security funds, also posted a deficit of 29.9 trillion won during the same period, compared with a deficit of 19.2 trillion won from a year earlier.
South Korea's economy grew 0.4 percent in the second quarter of this year from three months earlier, the slowest growth since a 0.3 percent gain in the fourth quarter of last year. (Yonhap)