Jeon Gyeong-seon, Jeonnam Provincial Assembly Member, "Actively Welcomes" Government's Extension Support for Balanced National Special Account

Jeon Gyeong-seon, Jeonnam Provincial Assembly Member

[Asia Economy Honam Reporting Headquarters Reporter Lee Jun-gyeong] Jeon Gyeong-seon, Chairperson of the Operations Committee of the Jeonnam Provincial Council (Democratic Party, Mokpo 5), expressed strong support on the 11th for the government's fiscal decentralization promotion plan confirmed and announced at the ‘2021 Local Finance Strategy Meeting’.

On this day, the government finalized and announced the ‘Phase 2 Fiscal Decentralization Promotion Direction’ at the Local Finance Strategy Meeting, which includes increasing the local consumption tax by an additional 4.3 percentage points to expand local finances by 4.1 trillion won, transferring 2.3 trillion won of national treasury subsidy projects to local governments, and establishing a 1 trillion won Local Extinction Response Fund.

As a result, Jeonnam will secure 2.4 trillion won over four years by receiving full extension and compensation for the special account conversion project funds of the balanced national and local accounts, which would otherwise decrease by 600 billion won annually starting in 2023.

Rural areas with a high share of balanced national and local accounts will see a green light for smooth progress in underdeveloped area development and disaster prevention projects.

Furthermore, with the establishment of the Local Extinction Response Fund amid the visible threat of local extinction due to rapid population decline, it is evaluated that a foundation for balanced development in non-metropolitan areas including Jeonnam has been laid.

Chairperson Jeon Gyeong-seon said, “The government’s sudden decision to extend the special account conversion project reflects the diligent efforts of Governor Kim Young-rok of Jeonnam, who visited and appealed dozens of times to the government, National Assembly, party-government-Cheongwadae councils, and the council of provincial governors, and submitted public petitions together with seven metropolitan rural provinces.”

He added, “There were many disagreements among government ministries, raising concerns that the special account might be cut off, but Jeonnam Province foresaw the future and achieved this through uninterrupted proactive administration. We must find and research suitable items to greatly design the future of our residents and ourselves accordingly.”

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