The deficit figure is higher than that logged in the first half of 2009 when the deficit was 40.5 trillion won due to the 2008 global financial crisis. The main reason for the surge in deficit had to do with the fact that the government was unable to collect taxes by 10.1 trillion won compared to a year ago.

 

However, the government is upbeat about the prospect of reaching the target deficit number by the year's end. Lee Tae-sung, head of the fiscal affairs directorate at the Finance Ministry, said, "In July, we could collect 1.7 trillion won more taxes than a year ago. We expect the tax collection situation will get better in the latter half while the government's spending will shrink slightly. At this rate, we can achieve the 23.4-trillion-won target deficit number by the end of this year."