Gyeongnam Province Drafts 14.2845 Trillion Won Budget for Next Year ... "Ensuring Residents' Safety and Happiness"

On November 13, Gyeongsangnam-do announced that it has drafted a 2026 budget proposal totaling 14.2845 trillion won.

Governor Park Wansu personally presented the proposal at the Gyeongnam Provincial Government Press Center, stating, "Despite challenging fiscal conditions, next year's budget proposal reflects Gyeongnam Province's efforts to ensure the safety and happiness of residents and to fully incorporate feedback from the field."

The 2026 budget proposal is 1.8118 trillion won larger than this year's original budget, with the general account at 12.7605 trillion won and the special account at 1.5240 trillion won.

Governor Park explained, "Due to instability in the real estate market and other factors, local tax revenue and other independent income sources have remained stagnant. However, central government funding reflected in the national budget proposal has exceeded 11 trillion won, resulting in a significant increase in government subsidies."

Park Wansu, Governor of Gyeongnam Province (center), is announcing the 2026 budget proposal. Photo by Lee Seryeong

According to the province, among the revenue budget, government subsidies amount to 8.4324 trillion won, local tax revenue to 3.8050 trillion won, and local allocation tax to 1.0801 trillion won, with government subsidies accounting for more than half of the total.

By sector, the expenditure budget includes 6.2944 trillion won for social welfare and healthcare, 1.4072 trillion won for agriculture, forestry, maritime, and fisheries, 785.4 billion won for the environment, 515.7 billion won for national land and regional development, 453.5 billion won for culture and tourism, and 367.2 billion won for industry and small and medium-sized enterprises.

The province has prioritized budget allocations in four key areas: ▲ recovery from wildfire and heavy rain damage, disaster and safety prevention; ▲ implementation of the 8th popularly elected administration's pledges, provincial policy tasks, and resident promise projects; ▲ fostering new growth and future-oriented industries; and ▲ policies for an era of resident happiness.

A total of 912.1 billion won has been allocated for safety projects, including recovery from the wildfire in March and the extreme heavy rain in July, as well as disaster and safety prevention. Additionally, 1.683 trillion won has been set aside for the implementation of pledges and policy tasks, such as promoting youth entrepreneurship through the creation of a youth hub, establishing a satellite development innovation center, supporting senior employment and social activities, and supporting the Modadream Youth Savings Account.

For fostering new growth and future-oriented industries such as artificial intelligence (AI), aerospace, nuclear power, and shipbuilding, 154.6 billion won has been allocated. For policies aimed at resident happiness, including the implementation of the Gyeongnam Provincial Pension, meal support for children from dual-income families during school vacations, and the establishment of a public postpartum care center in the western region, 520.9 billion won will be used.

Furthermore, budget allocations have been made to support the livelihoods and revitalize the local economy, including agricultural and fisheries income subsidies, basic rural income, regional gift certificates for cities and counties, and interest subsidies for small business policy funds.

Gyeongnam Province 2026 Budget Proposal Materials. Photo by Se Ryeong Lee

Governor Park emphasized that next year's budget proposal was drafted without issuing local government bonds.

He said, "I gave a lot of thought to whether we should issue local bonds," adding, "Depending on next year's regional economic situation and residents' livelihoods, if bond issuance becomes necessary, we will expand the budget through a supplementary budget."

Since the launch of the 8th popularly elected administration in July 2022, Gyeongnam Province has repaid 300 billion won of its approximately 1.2 trillion won in debt, and the current debt issuance limit stands at about 400 billion won.

Governor Park stated, "Based on next year's 14 trillion won budget, we will do our utmost to execute it swiftly and efficiently in the right places to realize the slogan of the 8th popularly elected Gyeongnam Province: 'Vibrant Gyeongnam, Happy Residents.'"

The provincial council will review Gyeongnam Province's 2026 budget proposal during the 428th regular session and is scheduled to process the budget at the 6th plenary session on November 16.