Gyeonggi Province Confirms 42.2 Trillion Won Supplementary Budget…Choo "More Concerned About Next Year's Finances"

Following the passage of the second supplementary budget, Governor Choo Mi-ae of Gyeonggi Province said, "We've put out the immediate fire, but the real problem is next year," and reiterated her long-standing position that local tax system reform is urgently needed to establish a stable revenue structure.

Governor Choo stated, "I believe this supplementary budget is a precious agreement achieved through the executive branch and the assembly's mutual understanding and pooling of efforts for the people of Gyeonggi Province despite difficult fiscal conditions," and added, "We will swiftly implement the projects reflected in the supplementary budget to ensure that livelihood projects proceed without delays."

At today's special session, a resolution urging "Local Tax System Reform to Overcome Gyeonggi Province's Fiscal Crisis and Establish a Stable Revenue Structure" also passed through the Gyeonggi Provincial Assembly plenary session. The Provincial Assembly plans to immediately send this to the Presidential Secretariat, the Office of the Prime Minister, the Ministry of the Interior and Safety, the Ministry of Economy and Finance, and the Budget and Planning Commission.

The resolution calls for three major tasks to secure stable revenue sources: ▲Gradually raising the local consumption tax rate from the current 25.3% to 40.3% ▲Transferring 5% of the national tax portion of corporate tax to regional local taxes ▲Converting the local education tax on tobacco consumption to the regional resources facility tax for fire services.

The second supplementary budget that passed through the Provincial Assembly plenary session today amounts to a total of 42 trillion 205.3 billion won. This is an increase of 525.4 billion won compared to the first supplementary budget of 41 trillion 679.9 billion won. The general account increased by 275.1 billion won and the special account by 250.3 billion won, respectively.

Despite the difficulty of declining local tax revenues, the province focused on reflecting budgets essential to the lives of the people of Gyeonggi Province. ▲Elderly long-term care facilities and home care services 123.4 billion won ▲Support for school meal expenses for kindergarten, elementary, middle, and high schools under the Gyeonggi Provincial Office of Education 58.4 billion won ▲Gyeonggi Province farmer and fishery worker opportunity income support 21.5 billion won ▲Gyeonggi Province youth basic income 16.3 billion won ▲Support for undernourished children's meals 7.5 billion won, among others.

By supplementing the insufficient three-month budget, centering on projects that had only nine months allocated in the regular budget, the province ensured that projects can proceed normally without support gaps through the end of the year.

Additionally, to support vulnerable groups and promote essential welfare and medical projects, the province reflected 22.3 billion won for infertile couple treatment support, 11.5 billion won for maternal and newborn health management support, 3 billion won for disability activity support services, 38.9 billion won for medical benefits, and 600 million won for national prevention vaccinations, among others.