Siheung City Sets 2024 Budget at 1.6419 Trillion Won, Down 12.6% from This Year

Suspension of Local Government Bond Issuance Due to Fiscal Management Burden

Siheung City in Gyeonggi Province has implemented austerity measures by suspending the issuance of local government bonds due to fiscal burdens, resulting in a 12.6% reduction in next year's budget.

On November 19, Siheung City announced that it has drafted a budget proposal of 1.6419 trillion won for next year, which will be submitted to the city council on November 21. This represents a 12.56% decrease compared to this year's main budget of 1.8779 trillion won.

An official from the city explained, "The reduction in next year's budget is intended to ease the fiscal burden caused by the issuance of local government bonds for two consecutive years due to the 2023 national tax deficit, as well as internal transaction deposits." The official added that the absence of revenue from two sources-959 billion won in local government bonds and 1.252 billion won in internal transaction income this year-has led to the decrease in next year's budget size.

By account, the general account has been reduced by 128.5 billion won to 1.4135 trillion won compared to this year. The special account has also been cut by 108.5 billion won to 228.4 billion won. On the other hand, the city has expanded its own-source revenue.

By revenue source, the breakdown is as follows: 479.5 billion won from local taxes, 61.8 billion won from non-tax revenue, 561 billion won from national and provincial subsidies, 160.9 billion won from local allocation tax, and 150.3 billion won from adjustment grants.

By sector, the proposed budget allocates: 4.7 billion won for building a future industry foundation; 56.5 billion won for metropolitan infrastructure; 33.5 billion won for citizen safety and convenience; 22.4 billion won for revitalizing the local economy and fostering small but strong enterprises; 58 billion won for carbon neutrality and environmental conservation; 13.1 billion won for future education support and infrastructure; 148.6 billion won for supporting vulnerable groups; 45.3 billion won for veterans and senior citizens; 14.5 billion won for youth, teenagers, and multicultural support; 45.3 billion won for children and women; 11.4 billion won for culture, sports, and tourism; 28.5 billion won for health and medical support; and 10.1 billion won for agriculture, livestock, and fisheries.

Despite the budget cuts, the city explained that it will newly allocate 2.2 billion won for basic transportation expenses for seniors aged 65 and over, and 1.6 billion won for entrance preparation funds for elementary, middle, and high school students. In addition, the childbirth congratulatory grant will be increased to 1.9 billion won, thereby strengthening life-cycle support for residents' stability.

This budget proposal is scheduled to be finalized on December 17 after deliberation by the city council. Alongside next year's main budget proposal, the city council will also review the third supplementary budget for this year, totaling 2.6056 trillion won, which was submitted earlier to reflect the second round of local economic recovery consumption coupons and other mandatory expenditures.

Lim Byeongtaek, Mayor of Siheung, stated, "Despite challenging revenue conditions, we have strived to include both public welfare and future growth in next year's budget proposal. We will continue to invest in areas directly linked to citizens' lives and work towards balanced urban development and the creation of a sustainable economic ecosystem."