Paju-si Promotes 'Strategic Expansionary Fiscal Policy' for Livelihood Recovery

‘2025 Paju City Budget Proposal’ Submitted to City Council with 2.1527 Trillion KRW
7.3% Increase from Previous Year...Focused Investment in 3 Core Areas: Protection of Vulnerable, Livelihood Vitality, and Self-Sufficient City Development
Mayor Kim Kyung-il: "Bold Fiscal Expansion...Taking First Step Toward Livelihood Recovery and Paju-Style Basic Society"

Gyeonggi Paju City (Mayor Kim Kyung-il) has prepared the largest budget in history to recover the livelihood economy amid the economic downturn in 2025.

Paju City Hall exterior. Provided by Paju City

Paju City announced on the 19th that it has prepared a budget of 2.1527 trillion won, an increase of 7.3%, which is double the government budget growth rate (3.2%), and plans to pursue bold expansionary fiscal policy aimed at revitalizing livelihoods.

Despite the economic recession and the slowdown in the real estate market, Paju City chose expansionary fiscal policy to fulfill the inherent role of local governments. The city reduced unnecessary projects and allocated available resources to livelihood issues and the 8th term election pledge projects through phased budget formulation.

Budget allocation scale since 2020. Provided by Paju-si

In particular, about 800 billion won has been allocated to address low birth rates and aging population issues and to protect socially vulnerable groups, and budgets for revitalizing the local economy and creating a self-sufficient city will also be intensively invested.

Paju City plans to concentrate a total of 1.1364 trillion won in three core areas: protection of the vulnerable, revitalization of livelihoods, and creation of a self-sufficient city.

7.998 billion won has been allocated to protect vulnerable groups such as support for victims of prostitution, basic pensions, and birth celebration allowances, and local economic revitalization will be promoted through the issuance of Paju Pay and support for small business owners. Additionally, 286.6 billion won will be invested in SOC construction and improvement of the public transportation system.

The largest portion of the 2025 budget is allocated to social welfare, with 845.4 billion won assigned from the general account. This accounts for 47.7% of the total budget and includes various welfare programs such as basic pensions, livelihood benefits, and infant care support. Through this, the city plans to strengthen the social safety net and support the independence of the vulnerable and disadvantaged groups.

2025 Paju City General Account Expenditure Composition. Provided by Paju City

Reflecting Mayor Kim Kyung-il’s “Only Livelihood” policy stance, a budget of 50 billion won has been allocated for job creation and support for small business owners to invigorate the local economy. Various economic revitalization policies such as the issuance of Paju Pay, public work projects, support for small and medium-sized enterprise management funds, and support for traditional markets will be promoted.

The city will invest 286.6 billion won in SOC construction such as roads, railways, and public transportation system improvements to grow into a city of one million people. Major projects include the promotion of the undergrounding of the Gyeongui Line, the extension of the Seohae Line to Paju, and the expansion of public transportation, securing future growth engines for Paju.

In addition to the three major investment areas, the city has carefully allocated budgets closely related to citizens’ lives, such as the education development special zone, Gyeonggi-do Sports Festival, disaster and accident prevention for citizen safety, and basic income for farmers.

Mayor Kim Kyung-il emphasized, “Tight fiscal policy is the wrong prescription during difficult times of prolonged economic recession,” and added, “It is the responsibility of local governments to serve as a breakwater to shield the low-income economy from shocks through bold expansionary fiscal policy for livelihoods, and that is true sound fiscal management.”