Gyeongbuk Provincial Office of Education Faces 140 Billion KRW Reduction in Government Grants This Year... 30% Cut in Business Promotion Expenses

[Asia Economy Yeongnam Reporting Headquarters, Reporter Park Dong-wook] The Gyeongsangbuk-do Office of Education announced on the 3rd that it has established a plan for the stable operation of educational finances in preparation for the expected decrease in grants from the central government and local education taxes due to the economic downturn caused by the novel coronavirus infection (COVID-19).

On the 4th of last month, the government submitted a third supplementary budget bill worth approximately 35 trillion won to the National Assembly to overcome COVID-19, which is expected to significantly reduce local education finance grants due to a decrease of 11.4 trillion won in domestic taxes this year.

Local education finances consist of local education finance grants, which are a certain percentage (20.79%) of domestic taxes, and local education taxes, and are linked to tax revenue decreases caused by economic downturns. Accordingly, the Gyeongbuk Office of Education expects that once the government’s third supplementary budget is finalized, the amount granted from the central government will be reduced by about 140 billion won.

Major expenditure adjustment projects include the cancellation of overseas training, cancellation of event projects involving large gatherings, reduction of domestic travel expenses and business promotion expenses by more than 30%, and reduction of facility project expenses that cannot be executed by the end of the year.

When there was financial leeway in educational finances last year, the Gyeongbuk Office of Education repaid 277.9 billion won of local education bonds earlier than planned and received an incentive of 6.52 billion won from the Ministry of Education. In addition, in May last year, to prepare for instability due to economic fluctuations and to operate educational finances soundly and stably, the “Gyeongbuk Office of Education Educational Finance Stabilization Fund Establishment and Operation Ordinance” was enacted, and a fund of 227 billion won was prepared.

The first supplementary budget confirmed on May 20 also reduced the previously allocated budget of 37 billion won to respond to COVID-19, and allocated 207.6 billion won for school quarantine, student safety, and revitalization of the depressed local economy.

Superintendent Lim Jong-sik stated, “Due to the characteristics of the revenue structure of local education finances, instability caused by domestic and international economic conditions is significant. Although a decrease in grants from the central government and local education taxes is expected due to the economic downturn caused by COVID-19, we will do our best to secure educational finances stably and operate them in a balanced manner.”

This content was produced with the assistance of AI translation services.