Daegu City Enters '10 Trillion Era' in Revenue and Expenditure Settlement... Debt Ratio Decreases Annually

2020 Revenue KRW 11.5373 Trillion, Expenditure KRW 10.7194 Trillion ... Surplus KRW 817.9 Billion

The photo shows the recently opened 'Urban Garden' in Daegu City.

[Asia Economy Yeongnam Reporting Headquarters Reporter Park Dong-wook] Daegu City set a new milestone by exceeding 10 trillion won in both revenue and expenditure in the fiscal year 2020 accounting settlement results. The debt ratio, which serves as a standard for assessing the soundness of local finances, was found to have maintained a continuous downward trend each year.

According to Daegu City on the 19th, the budget accounting settlement amount for last year, including the general account and 14 special accounts, recorded revenue of 11.5373 trillion won and expenditure of 10.7194 trillion won, resulting in a surplus of 817.9 billion won.

Among the surplus, after excluding the carryover amount of 336.7 billion won to the next year and the return of national treasury subsidies and grant differences of 35.4 billion won, the net world surplus was calculated at 445.8 billion won (general account 386.3 billion won, special accounts 59.5 billion won).

Among the revenue settlements, local taxes amounted to 3.1687 trillion won, an increase of 389.1 billion won (14%) compared to the previous year (2.7796 trillion won). Among these, resident tax decreased by 5.3 billion won (39.8%) from 13.3 billion won the previous year, but acquisition tax increased by 276.1 billion won (30.7%) from 899.6 billion won, and local consumption tax increased by 118.7 billion won (20.3%) from 585.3 billion won the previous year.

This is interpreted as a decrease in resident tax due to resident tax reductions to alleviate the burden on small business owners affected by COVID-19, an increase in acquisition tax due to increased real estate transactions and price rises, and an increase in local consumption tax due to the local consumption tax rate hike (15% → 21%).

Looking at each account, the general account recorded revenue of 8.9001 trillion won and expenditure of 8.2513 trillion won, resulting in a surplus of 648.8 billion won. After excluding the carryover amount of 228 billion won to the next year and the return of national treasury subsidies and grant differences of 34.5 billion won, the net world surplus was 386.3 billion won.

The special accounts recorded revenue of 2.6372 trillion won and expenditure of 2.4681 trillion won, resulting in a surplus of 169.1 billion won. After excluding the carryover amount of 108.7 billion won to the next year and the return of national treasury subsidies and grant differences of 900 million won, the net world surplus totaled 59.5 billion won.

Among the settlement details, the debt under the budget accounting (single-entry bookkeeping, cash basis) method for Daegu City headquarters was 2.0893 trillion won at the end of 2020. This increased by 380.3 billion won compared to the previous year due to the creation of long-term unexecuted parks and the establishment of COVID-19 disaster management and relief funds.

Also, assets under the financial accounting (double-entry bookkeeping, accrual basis) method increased by 807.6 billion won to 35.4931 trillion won due to an increase in urban park land following the park sunset system. Liabilities increased by 457.7 billion won from 2.248 trillion won at the end of the previous year to 2.7057 trillion won due to an increase in local bond securities.

The total debt scale of Daegu City, including public corporations and public institutions, was 4.5372 trillion won, an increase of 745.2 billion won from 3.792 trillion won at the end of the previous year. In addition, the 18 fund accounts increased by 447.5 billion won from 987.1 billion won at the end of the previous year to 1.4346 trillion won due to increases in COVID-19 related disaster management and relief funds.

The settlement details will undergo a settlement inspection for 20 days from April 23 to May 12, involving city council members, certified public accountants, tax accountants, and financial experts, and will receive final approval at the first regular session of the city council in June.

Cha Hyuk-kwan, Director of the Daegu City Autonomous Administration Bureau, stated, "We will continue to improve on the points raised during the settlement inspection by the 'Settlement Inspection Committee' composed mainly of private experts and the city council's settlement review process, and strive further to maintain transparent financial execution and a sound fiscal policy."

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