Local governments across the nation posted steep budget deficits last year due to increased spending in overcoming the COVID-19 pandemic.

According to the Ministry of the Interior and Safety on Tuesday, the consolidated fiscal balance of 243 municipal governments for the 2020 fiscal year stood at a deficit of eight-point-seven trillion won. This compares to a surplus of six trillion won in 2019.

The ministry assessed that expenditures outpaced revenue under expansionary spending to support small business owners, create jobs and revitalize regional economies.

Meanwhile, the consolidated fiscal balance for the nation reached a deficit of 71-point-two trillion won.

The combined due debt of local governments stood at 23-point-nine trillion won in 2020, up four-point-eight trillion from a year ago.