Ministry of Economy and Finance: "Preemptive Post-Corona Response Requires Local Government Cooperation"

2020 Local Finance Council Meeting Held

[Asia Economy Reporter Kim Hyunjung] Ando-geol, Director of the Budget Office at the Ministry of Economy and Finance, stated on the 19th that cooperation from local governments is essential to proactively respond to the post-COVID-19 situation.

Director Ando held the 2020 Local Finance Council at the Government Sejong Complex on the same day and said, "In a situation where economic and social structural changes are rapidly occurring due to COVID-19, it is important to turn the crisis into an opportunity." He added, "We must respond to the post-COVID era through Korea’s leading exemplary system improvements such as K-quarantine, and Korea’s New Deal initiatives including the 'Digital New Deal' and 'Green New Deal,' which are our strengths," requesting each local government to propose innovative projects and show interest in developing these initiatives.

The Local Finance Council, held annually since 2009, is a forum where financial authorities and local governments exchange opinions on the direction of fiscal management and regional priority projects for the following year before the official budget formulation begins. Due to the impact of COVID-19, the meeting connected 17 local governments via remote video conferencing, and in addition to the usual participants from financial authorities and local governments, major ministries, the Balanced Development Committee, and private experts attended to share and develop diverse perspectives on fiscal investment directions.

Furthermore, a discussion session was organized to closely discuss fiscal investment directions by sector among local governments, central ministries, experts, and Balanced Development Committee members, and to coordinate common-interest fiscal projects of local governments such as fostering regional specialized industries and R&D, and establishing national core SOC by linking central government treasury support with regional development plans.

The regional priority projects proposed on this day will be reviewed by each ministry and submitted to the Ministry of Economy and Finance by May 31. After consultations among the Ministry of Economy and Finance, relevant ministries, and local governments, projects eligible for support will be reflected in the 2021 budget proposal.

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