The finance ministry said Monday that the government will utilize foreign exchange equalization funds and other resources available while slashing local subsidies to deal with the expected massive tax revenue shortfall this year.

The government is projected to collect 337.7 trillion won ($253.41 billion) in taxes in 2024, an 8.1 percent, or 29.6 trillion won, fall from its forecast made in the 2024 budget planning due mainly to weak corporate activities amid an economic slowdown last year, according to the Ministry of Economy and Finance.

The revised amount was also 6.4 trillion won smaller than last year's tax revenue of 344.1 trillion won, when the country suffered a record shortfall of 56.4 trillion won.

"Despite the shortfall, the government will not issue additional government bonds and instead utilize state resources available in consideration of financial sustainability and other issues," the ministry said in a release.

According to the plan, the ministry will use up to 16 trillion won of public funds, including 4 trillion won of public capital management funds, a maximum of 6 trillion won of foreign exchange equalization funds, and about 3 trillion won of funds for housing and urban management.

In addition, the ministry plans to defer the payment of 6.5 trillion won to local governments, though it is supposed to slash 9.7 trillion won in subsidies in conjunction with a decline in tax revenues.

The ministry also noted that the government's unused budget is expected to reach 7 to 9 trillion won this year.

"We will strive for administering budgets approved by the National Assembly without a hitch and prioritize infrastructure projects and programs meant to support the livelihoods of the people so as to minimize the impact of the revenue shortfall on the economy," the ministry said. (Yonhap)