Jeonbuk Provincial Council Member Du Sehun, 'Preventing Local Fiscal Loss by Extending the Preservation Period of the Balanced National Special Account Project'

Government Accepts Provincial Assembly's Proposal to Temporarily Extend the Special Balanced Development Project Preservation Period

[Jeonju=Asia Economy Honam Reporting Headquarters Reporter Kim Han-ho] The government has accepted the proposal from the Jeollabuk-do Provincial Council to extend the temporary preservation of the Balanced National Development Transfer Project and decided to extend the project, which was originally preserved only until 2022, for an additional four years until 2026.

In December of last year, the Jeollabuk-do Provincial Council adopted the "Proposal Urging Changes to the Current Local Fiscal Decentralization that Hinders National Balanced Development," which was primarily proposed by Provincial Assemblyman Doosehun Du (Wanju 2, Democratic Party).

Assemblyman Du stated in the proposal, "If the preservation period for the Balanced National Development Local Transfer Project ends, it is estimated that from 2023 onwards, Jeonbuk's annual revenue will decrease by 223.9 billion KRW, Jeonnam by 426.3 billion KRW, and Gyeongbuk by 179.6 billion KRW compared to before," and strongly urged the government to "first extend the temporary preservation period."

Additionally, Governor Song Ha-jin aligned with the Jeollabuk-do Provincial Council and continuously requested the extension of the temporary preservation period for the Balanced National Development Transfer Project at the National Governors Association.

In response, the Ministry of the Interior and Safety held the "2021 Local Finance Strategy Meeting" last August and announced a local finance innovation plan that includes a four-year extension of the temporary preservation period for the Balanced National Development Transfer Project.

Furthermore, as a follow-up measure by the National Assembly, the related Local Tax Act amendment bill passed the relevant standing committee, the Public Administration and Security Committee, on September 13 and is expected to pass the plenary session of the National Assembly within this year.

Once the Local Tax Act amendment bill passes the National Assembly and the preservation period for the Balanced National Development Transfer Project is extended by four years, Jeollabuk-do will be able to receive 223.9 billion KRW annually (a total of 895.6 billion KRW) until 2026, enabling continuous promotion of projects directly related to the lives, safety, and livelihood of the residents.

Assemblyman Doosehun Du stated, "While it is welcome that the government extended the preservation period of the Balanced National Development Transfer Project by four years through the second phase of fiscal decentralization, this is still only temporary support," and added, "It is urgent to amend the related Local Tax Act to make the preservation period of the Balanced National Development Transfer Project permanent."

Jeonju=Honam Reporting Headquarters Reporter Kim Han-ho stonepeak@asiae.co.kr

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