Jeju Island, Last Year's Accounting Revenue and Expenditure and Financial Accounting Settlement Results Released

Jeju Special Self-Governing Province Government Complex

[Asia Economy Honam Reporting Headquarters (Jeju) Reporter Park Chang-won] Jeju Special Self-Governing Province announced on the 12th that it has prepared the ‘2020 Fiscal Year Revenue, Expenditure, and Financial’ settlement statement in accordance with Article 134 of the Local Autonomy Act, and plans to obtain settlement approval at the 1st regular session of the Jeju Provincial Council after the settlement inspection by the settlement inspection committee.

The 2020 fiscal year settlement results showed total revenue of 6.6892 trillion KRW, total expenditure of 5.906 trillion KRW, and a surplus of 783.2 billion KRW.

The 2020 fiscal year settlement details will undergo settlement inspection by the settlement inspection committee, consisting of provincial council members, professors, and tax accountants appointed by the Jeju Provincial Council from today until the 29th, and will be submitted to the council by the end of next month.

Jeju Province disclosed the revenue and expenditure settlement results for a total of 44 accounts, including the general account, special accounts, and 24 funds for the 2020 fiscal year.

Total revenue increased by 400.2 billion KRW (6.4%) compared to the previous year and increased by 88.6 billion KRW (1.3%) compared to the budget.

The general account collected 5.7422 trillion KRW, exceeding the budget by 99 billion KRW, while the special accounts collected 947 billion KRW, which is 10.3 billion KRW less than the budget.

Regarding local taxes, despite revenue reduction factors such as a decrease in leisure tax due to COVID-19 and a contraction in real estate transactions, acquisition tax increased due to the completion of large-scale projects and the local consumption tax rate increase, resulting in a collection of 1.6018 trillion KRW, an increase of 82.3 billion KRW compared to the previous year.

Non-tax revenue increased by 43.3 billion KRW (11.1%) compared to the previous year, collecting 435 billion KRW from business income and others.

Total expenditure was 5.906 trillion KRW out of the budget amount of 6.6006 trillion KRW (execution rate 89.5%), an increase of 275.6 billion KRW (4.9%) compared to the previous year.

Looking at the settlement by major expenditure sectors, the social welfare sector accounted for the largest share with 1.5098 trillion KRW, an increase of 304.7 billion KRW (25.3%) compared to the previous year.

The sector with the largest increase compared to the previous year was the health sector, which spent 95.2 billion KRW in response to COVID-19, a 33.4% increase from the previous year.

Other increases were seen in environment with 678 billion KRW (11.5%), agriculture, forestry, marine and fisheries with 611.3 billion KRW (10.4%), and transportation and logistics with 454.5 billion KRW (7.7%).

The settlement surplus, calculated by subtracting total expenditure from total revenue, increased by 124.6 billion KRW (18.9%) compared to the previous year, and carryover funds increased by 81.2 billion KRW to 420.3 billion KRW.

The net surplus, excluding carryover funds and actual subsidy returns from the settlement surplus, was confirmed to be 297.5 billion KRW.

Funds amounted to 1.3237 trillion KRW, an increase of 53.3 billion KRW (4.2%) compared to the previous year, and the current debt balance increased by 242.2 billion KRW to 735.9 billion KRW.

The increase in current debt balance is analyzed to be due to the issuance of local bonds (263.8 billion KRW) for land compensation and maintenance projects of long-term unexecuted urban planning facilities (parks, roads).

The current value of public property increased by 1.588 trillion KRW (7.3%) compared to the previous year to 23.2466 trillion KRW through comprehensive public property maintenance.

According to the financial accounting settlement, Jeju Special Self-Governing Province’s assets increased by 1.1027 trillion KRW compared to the previous year to 25.4076 trillion KRW, and liabilities increased by 1.3329 trillion KRW (an increase of 285.9 billion KRW compared to the previous year).

Net assets (assets minus liabilities) were 24.0747 trillion KRW, an increase of 816.8 billion KRW (3.5%) compared to the previous year.

The asset acquisition ratio relative to expenditure was 16.60%, down 3.98 percentage points from 20.58% the previous year, indicating a decrease in facility investment ratio and an increase in expenditure for projects to overcome COVID-19.

Liabilities increased due to external borrowings and local bond issuance for maintenance of long-term unexecuted urban planning facilities, land compensation, and expansion of social infrastructure and resident convenience facilities, with the debt growth rate (27.3%) exceeding the asset growth rate (4.5%) compared to the previous year.

Song Jong-sik, Director of the Special Self-Governing Administration Bureau, said, “Last year, due to COVID-19, various events were canceled, causing difficulties in financial execution, but we did our best to execute public finances during a time when the local economy was more difficult than ever. We will continuously strive to reflect and improve on the issues pointed out during the settlement inspection and the Provincial Council’s settlement approval review process.”

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