SEOUL: South Korea’s public account deficit hit a record high last year owing to increased government handouts for merchants hit by the COVID-19 pandemic and higher raw material prices, central bank data showed Wednesday, reported Xinhua.
The public account balance, including the central and local governments, social security funds, and public companies, logged a deficit of 95.8 trillion won (US$72 billion) in 2022, according to the Bank of Korea (BOK).
It marked the highest shortfall since relevant data began to be compiled in 2007.
The public sector’s total income gained 11.0 per cent in 2022 from a year earlier, while the total expenditure soared 17.4 per cent as higher commodity prices lifted production costs for public corporations while the central government expanded grants to pandemic-affected merchants and micro businesses.
The central government’s total spending amounted to 551.8 trillion won (US$415 billion) in 2022, higher than its total income of 471.1 trillion won (US$354 billion).
Total expenditure by non-financial public corporations came to 286.7 trillion won (US$215.7 billion) last year, far higher than their total income of 222.8 trillion won (US$167.6 billion).-Bernama
