South Korea's fiscal deficit narrowed in the first five months of 2023 from a year earlier as the country cut spending on pandemic-related expenditures, data showed Thursday.

The managed fiscal balance, a key gauge of fiscal health calculated on a stricter term, posted a deficit of 52.5 trillion won ($40.9 billion) in the January-May period, compared with a shortfall of 71.2 trillion won tallied a year earlier, according to the Ministry of Economy and Finance.

South Korea's tax revenue came to 160.2 trillion won during the cited period, down 36.4 trillion won on-year due to weaker income and corporate taxes collected.

The total revenue dropped to 256.6 trillion won in the January-May period, down 37 trillion won on-year.

Total expenditures came to 287.4 trillion won over the period, as the government reduced its pandemic-related spending.

The government's debt had reached 1,088.7 trillion won as of May, up 16 trillion won from a month earlier, the data also showed. (Yonhap)