Daejeon’s Budget for Next Year Set at 7.2 Trillion Won... 9% Increase from This Year

[Asia Economy (Daejeon) Reporter Jeong Il-woong] Daejeon City has prepared a budget of 7.2174 trillion won for next year, representing a 9% increase compared to this year.

According to the city on the 10th, next year's budget plan is composed of 5.3668 trillion won in the general account, 998.4 billion won in the special account, and 852.2 billion won in funds.

The general account increased by 651.8 billion won (13.8%↑) compared to this year, the special account increased by 31.5 billion won (3.3%↑), while funds decreased by 86 billion won (9.2%↓).

The city expects that economic conditions will improve due to the commercialization of COVID-19 vaccines, leading to a slight increase in local tax revenues and transfer income supported by the national government.

Specifically, local taxes such as automobile tax and leisure tax are expected to decrease, whereas acquisition tax, resident tax, tobacco consumption tax, local consumption tax, and local income tax are expected to increase.

Regarding transfer income, the city anticipates a decrease in the National Balanced Development Special Account subsidies and funds, while local allocation tax and national treasury subsidies will increase, resulting in a slight overall increase.

The expenditure budget focuses on recovering the local economy, which has worsened due to the prolonged COVID-19 pandemic. Additionally, the budget will concentrate on promised projects with citizens, new food-related businesses, and projects responding to demographic changes.

By sector, the welfare budget accounts for the largest share (37.9%) at 2.4133 trillion won, an increase of 228.3 billion won compared to this year. In the economic sector, the science and technology budget has been increased by 31.5 billion won (64.2%) to 80.5 billion won.

The budget plan is expected to be finalized on the 14th of next month after approval by the city council.

Mayor Heo Tae-jeong of Daejeon said, “Next year’s fiscal role will inevitably be greater than ever to achieve a full recovery to the pre-COVID-19 crisis level,” adding, “The city has prepared next year’s budget plan focusing on actively increasing fiscal expenditure to recover the local economy and transition to a leading economy.”

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