Gyeongbuk Province Prepares 12.6078 Trillion Won Budget for Next Year... 4.4% Increase from This Year

Final Approval at the Provincial Assembly on the 11th of Next Month

Gyeongbuk Province announced on the 12th that it has prepared the next year's budget proposal at 12.6078 trillion won, an increase of 525.7 billion won (4.4%) compared to this year, and submitted it to the Provincial Council. The size of next year's budget proposal consists of 11.0193 trillion won in the general account and 1.4885 trillion won in the special account.

Gyeongbuk Province stated that although the general revenue budget from local taxes decreased by 88 billion won and local allocation tax by 97.1 billion won, totaling a reduction of 192.4 billion won compared to this year due to worsening tax revenue conditions caused by the economic downturn, national treasury subsidies increased by 800.6 billion won (14.6% increase from the previous year) due to large-scale disaster recovery costs from the concentrated heavy rains in July and Typhoon Khanun damage, as well as increased government welfare expenditures, resulting in an overall budget increase of 4.4%.

Gyeongbuk Provincial Government Office

Despite the unprecedented difficult financial conditions with declining national and local tax revenues, under the policy of ‘intensive expenditure restructuring’ and ‘bold investment in essential areas,’ the budget was prepared for the second consecutive year without issuing local bonds. Accordingly, the increase in next year's budget proposal was limited to 525.7 billion won, which does not even reach the scale of the increase in national treasury subsidies compared to the previous year.

To maintain a sound fiscal policy without issuing local bonds despite the nationwide tax revenue shortage, the province implemented measures such as the implementation of a ceiling system for local subsidies by departments and offices, a 20-30% reduction in projects with poor performance evaluations, and a fundamental review of local subsidy projects supported for more than three years, saving 71.4 billion won (12.6%), followed by a 10% reduction in business promotion expenses through self-discipline efforts.

For new private subsidy projects, strict exclusion of populist subsidy support projects was enforced through face-to-face evaluations by private evaluation committee members, and the budget was prepared to ensure that essential projects are supported without omission.

However, under the policy of bold investment in essential areas, focused investments were made in four areas: sharing and spreading the leading model of the local era, a happy Gyeongbuk for all, fostering future industries as Gyeongbuk’s growth engine, and ensuring the daily safety of Gyeongbuk residents.

Looking at the major budget allocation status by key tasks for 2024, a total of 63.7 billion won will be invested in the Gyeongbuk K-U City Project, youth settlement support, and Gyeongbuk-style Neighbor Village pilot projects to share and spread the leading model of the local era. Additionally, 779.1 billion won will be invested in zero childcare burden projects, 3.3215 trillion won in welfare support projects for the vulnerable, and 275.9 billion won in customized job support.

Furthermore, 142.8 billion won will be invested to overcome crises faced by small and medium-sized enterprises and small business owners, 479.3 billion won in the re-advancement of Gyeongbuk-style cultural tourism, and 1.3037 trillion won will be used for nurturing core talents, fostering advanced industries, and promoting technology-driven agriculture, forestry, and fisheries.

In addition, 100.9 billion won will be invested in nurturing core talents linked with industry-academia-research cooperation, 115.1 billion won in fostering advanced industries, and 1.0877 trillion won in technology-driven agriculture, forestry, and fisheries. Also, 3.1912 trillion won will be allocated for realizing a safe daily life for residents through smart safety Gyeongbuk advancement, infrastructure reinforcement against extreme climate, and rapid and systematic disaster recovery, with 1.1569 trillion won invested in infrastructure reinforcement against extreme climate.

Governor Lee Cheol-woo of Gyeongbuk said, “Although the overall budget size increased due to the allocation of national treasury subsidies for flood damage recovery, the unprecedented shortage of tax revenue has reduced the resources that Gyeongbuk can use independently, making the financial situation more difficult than ever.” He emphasized, “Despite the difficult conditions, we will save as much as possible where we can, and boldly invest in essential areas such as welfare for the vulnerable, resident safety, revitalization of the local economy, and leading the local era, concentrating all administrative power on realizing a local era where ordinary people succeed and residents feel secure.”

The 2024 budget proposal submitted by Gyeongbuk Province is scheduled to be finalized on December 11 after deliberations by the Provincial Council’s standing committees and the Budget and Accounts Committee.