Gwangju City Allocates 6.2817 Trillion Won Budget for 2021, 10% Increase from This Year

Job Budget of 1.1565 Trillion Won Including Gwangju-type New Deal... Largest Ever

Kim Jong-hyo, Deputy Mayor of Gwangju Metropolitan City, is briefing on the 2021 main budget at the city hall briefing room on the morning of the 10th. Photo by Gwangju Metropolitan City

[Asia Economy Honam Reporting Headquarters Reporter Park Seon-gang] Gwangju Metropolitan City announced on the 10th that it will submit the 2021 budget proposal to the city council on the 11th, with a 10% increase of 569.3 billion KRW from this year, totaling 6.2817 trillion KRW.

The budget size consists of 4.9391 trillion KRW in the general account and 1.3426 trillion KRW in the special account, making it the largest ever budget aimed at revitalizing the local economy, which has been depressed due to COVID-19, through expansionary fiscal management.

Next year's local taxes and non-tax revenues increased by 138.3 billion KRW (6.7%) to 2.1958 trillion KRW, and national subsidies and local allocation taxes increased by 245.6 billion KRW (8.4%) compared to this year, totaling 3.1812 trillion KRW.

By sector, the social welfare and health sector (39.1%) accounts for the largest share, followed by the economic sector (26.1%) and transportation and logistics sector (18.1%), which were significantly expanded, while the general public administration sector (8.1%) saw a slight increase.

Regarding the expenditure budget, despite difficult financial conditions, the budget was allocated mainly to urgent projects promoted by the city, such as the construction of Urban Railway Line 2. Projects ending in the 7th term of the elected mayor will be completed without delay, and ongoing SOC projects will be implemented sequentially considering the execution period.

Additionally, investments were focused on the city's five administrative goals: ▲ Prosperous Gwangju ▲ Warm Gwangju ▲ Elegant Gwangju ▲ Safe and Comfortable Gwangju ▲ Gwangju as a Leading City of the 4th Industrial Revolution.

A notable project next year is the newly allocated 48.8 billion KRW for birth and childcare allowances to create a ‘Gwangju that is good for having and raising children.’

Starting next year, parents who give birth in Gwangju will receive a childbirth congratulatory payment of 1 million KRW for the first child and a monthly childcare allowance of 200,000 KRW for 24 months.

In addition, a total of 228 billion KRW was allocated for establishing Gwangju-type postpartum care public services and supporting infertility health checkups for young couples.

To replenish the disaster and emergency preparedness fund depleted by COVID-19, an additional 71.1 billion KRW was secured. Emergency disaster funds will be prepared to enable prompt response in case of disasters next year.

Furthermore, to create a warm Gwangju, 14.4 billion KRW will be allocated to expand emergency welfare support, 2.8 billion KRW for support for severely disabled developmental disorder patients, and 200 million KRW for public Wi-Fi usage fees at senior centers.

To lead the 4th Industrial Revolution by creating a Gwangju-type artificial intelligence (AI) business model and to build ‘Gwangju as an AI-centered city,’ a total of 89.3 billion KRW will be invested, including 71.8 billion KRW from the government budget.

The budget for creating good jobs, a core task of city administration, increased by 230.4 billion KRW (24.9%) from this year's main budget of 924.2 billion KRW to 1.1546 trillion KRW.

This is the largest ever at 23.4% of the general account and reflects the will of the 7th term administration, which is expected to further accelerate projects aimed at creating 100,000 jobs, the city's target.

To foster 11 representative industries responsible for leading Gwangju as a city of the 4th Industrial Revolution and securing future growth engines, 123.8 billion KRW was allocated, an increase of 6.7 billion KRW compared to the previous year.

The city allocated 65.6 billion KRW next year to rapidly promote three Gwangju-type New Deal projects: AI-centered Digital New Deal, Green New Deal for realizing an energy self-sufficient city, and Human New Deal based on Gwangju-type jobs, to proactively and preemptively respond to the 4th Industrial Revolution era.

The construction of Urban Railway Line 2, which held its groundbreaking ceremony last September, is being actively promoted, with a project cost of 373.4 billion KRW scheduled for investment next year. Early execution in the first half of the year is expected to contribute to revitalizing the local economy.

Urban Railway Line 2 is divided into three phases; the first phase has already started construction, and the second and third phases will begin sequentially from next year, scheduled to open in 2024 and 2025, respectively.

A total of 63 billion KRW was allocated for projects to restore Gwangju's uniqueness and create a cultured Gwangju with dignity, including the construction of public libraries, the Gwangju Literature Hall, and the Gwangju Realistic Content Cube.

Despite difficult financial conditions such as reduced autonomous revenue, Gwangju City minimized wasteful spending through cost-cutting on current expenses and restructuring of expenditure for repetitive annual projects to ensure no disruption in essential projects.

Regarding construction costs, projects with delayed execution such as land compensation were extended to proceed considering the execution status.

Kim Jong-hyo, Deputy Mayor for Administration, said, “The 2021 budget focuses on investing in citizen-needed projects such as job creation despite difficult financial conditions due to COVID-19. We will execute the budget approved by the city council as quickly as possible to serve as a catalyst for revitalizing the local economy.”

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