SEOUL Feb 10 South Korea reported a substantial
second straight budget surplus in fiscal year 2016, thanks to a
rise in tax revenue, government figues showed on Friday.
Total gross revenue for last year was 345.0 trillion won
while expenditures amounted to 332.2 trillion won, the Ministry
of Strategy and Finance said in a statement. From the 12.8
trillion won left from the revenue after expenditures, 4.8
trillion won will be carried over to be used in 2017, resulting
in an 8.0 trillion won surplus.
Most of that surplus will be used to pay back debt and other
In 2015, the budget surplus was 2.8 trillion won.
Of the total revenue collected in 2016, tax income was at
242.6 trillion won, up 24.7 trillion won from 2015 and
overshooting the government's target by 9.8 trillion won.
The government saw 102.4 trillion won in non-tax income last
year, down 7.8 trillion won from 2015 and standing 6.8 trillion
won below the government's target.
The surge in tax revenue was largely from value-added tax
(VAT) and corporate tax, which respectively rose 12.8 percent
and 15.7 percent in 2016 versus 2015.
The increase in VAT was mainly from increased consumption
while exports and corporate investments remained sluggish, the
finance ministry said. Corporate tax revenue benefited from
factors including better business performance.
($1 = 1,150.0000 won)
(Reporting by Christine Kim; Editing by Eric Meijer)