The government logged a cumulative fiscal surplus of 3 trillion won ($2.6 billion) in the January-October period in 2011, but predicted the account will post a deficit in the year-end fiscal settlement, the Finance Ministry said Friday.
The cumulative surplus for the first 10 months in 2011 is up 12 trillion won from same time last year. The government logged a 9.9 trillion won deficit during the same time in 2010.
“The surplus increase in October was largely because of the temporary increase in the value-added tax income,” the ministry said. “The account is expected to swing to deficit when the rest of the budget is spent,” it added.
The country posted a trade surplus in November for the 22nd consecutive month with $3.5 billion. According to the Korea Customs Service, exports grew by 12.7 percent on year to $46.5 billion in November and imports increased 11.1 percent to $43 billion. But the trade surplus between January and October dropped to $29.3 billion from $37.1 billion last year.
The country still opened the door to $1 trillion in trade volume on Nov. 5
The ministry in September proposed to increase its spending next year by 5.5 percent to 326.1 trillion won, prioritizing job creation and fiscal soundness. It said the 2012 budget plan will cut the government deficit to 1 percent of gross domestic product from the 2 percent expected for this year. Under the plan, the government will spend less than it takes in until it achieves a balanced budget in 2013 ― the year the Lee Myung-bak administration targeted to make revenues equal expenditure.
By Cynthia J. Kim (
cynthiak@heraldcorp.com)
