Gyeonggi-do Confirms 'Kim Dong-yeon Style Expansion Budget' for Next Year... 36.121 Trillion Won Allocated

Gyeonggi Province Governor Kim Dong-yeon is explaining next year's budget and other matters at the provincial council plenary session on the 21st.

The 2024 Gyeonggi Province budget, which includes key campaign projects of Governor Kim Dong-yeon such as attracting investments exceeding 100 trillion won, the The Gyeonggi Pass, 360° care, and RE100, passed the Gyeonggi Provincial Assembly on the 21st.

While most of the government and major local governments in Korea showed a reduction trend citing sound fiscal management, Gyeonggi Province recorded the largest increase compared to this year's budget among the 17 metropolitan cities and provinces, clearly maintaining an expansionary fiscal stance.

According to Gyeonggi Province, the Gyeonggi Provincial Assembly held the 5th plenary session of the 372nd regular meeting on the same day and finalized the 2024 Gyeonggi Province budget at 36.121 trillion won. This is an increase of 2.3106 trillion won (6.8%) compared to this year's original budget. The budget for next year consists of 32.1504 trillion won in the general account and 3.9706 trillion won in the special account. The general account budget increased by 2.1734 trillion won compared to this year's 29.977 trillion won. This is the first time in Gyeonggi Province's history that the general account budget has exceeded 30 trillion won.

Governor Kim Dong-yeon stated at last month's press conference announcing next year's budget, "Although the fiscal conditions are difficult, we will continue the 'expansionary fiscal' stance revealed in the 2023 supplementary budget next year as well. Through this, we will actively invest in the future," adding, "During a 'recession period,' it is important to expand the budget to stimulate the economy, and during an 'economic upswing,' to reduce the budget to maintain balance, highlighting the active role of fiscal policy."

Accordingly, Gyeonggi Province formed a council with the provincial assembly and the ruling and opposition parties and, through continuous communication for budget processing, achieved the passage of a budget that maintains the expansionary fiscal stance.

In particular, Governor Kim Dong-yeon devoted great effort to the budget process by starting with a roundtable with the assembly chairpersons and party leaders on the 9th of last month and visiting the two major party leaders in the assembly on the 6th and 20th of this month to request cooperation in budget deliberations.

The 6.8% increase rate of Gyeonggi Province's budget contrasts with the government's budget increase rate of 2.8%. The government's 2.8% increase in budget expenditure is the smallest increase in 19 years since fiscal statistics were reorganized in 2005. Moreover, it falls short of the government's predicted nominal growth rate of 4.9% for next year, effectively being evaluated as a 'tight fiscal policy.'

On the other hand, Gyeonggi Province's 6.8% budget increase rate is a significant upward adjustment compared to this year's 0.6% increase. Especially considering that about 1 trillion won in tax revenue decrease is expected compared to this year's original budget, it reflects Governor Kim Dong-yeon's strong commitment to expansionary fiscal policy.

With the confirmation of the 2024 budget, the third year of the 8th elected administration will gain more momentum by focusing investments on three major areas: ▲economy ▲care ▲future, as well as the development of northern Gyeonggi. Gyeonggi Province also expects that through expansionary fiscal policy, it will overcome economic difficulties and move toward becoming the 'Opportunity Capital Gyeonggi Province,' where all residents can enjoy opportunities.