South Korea posted a record budget deficit in the first half of the year amid the government's increased spending to overcome the fallout from the COVID-19 pandemic and a decline in tax revenue.

According to the Finance Ministry on Tuesday, the government's gross revenue totaled 226 trillion won between January and June, down 20-point-one trillion won from a year earlier.

Government expenditures, on the other hand, expanded by 31-point-four trillion won to 316 trillion won during the same period, resulting in a shortfall of 90 trillion won.

Excluding four state pension schemes, the government's budget deficit reached a record of around 111 trillion won, up 51 trillion won on-year.

The deficit can be mostly attributed to a drop in national tax revenue, which fell 23-point-three trillion won on-year, and a surge in spending by 31-point-four trillion won, including COVID-19 cash relief and extra budgets.