Incheon City Opens Era of 50 Trillion Won in National Budget for Next Year... 11.3% Increase from This Year

Including 890 Billion KRW in General Grants, 5.338 Trillion KRW
Focused Investment in Eco-Friendly, Resource Circulation, Hydrogen, and Bio Sectors

Incheon City Hall

[Asia Economy Reporter Park Hyesook] Incheon City has entered the era of 5 trillion won in national funds. The city announced on the 6th that it secured 5.338 trillion won in national funds for next year's budget.

The government’s national treasury subsidies supporting specific projects of the city amount to 4.0888 trillion won, national direct project expenses implemented directly in Incheon total 359.2 billion won, and ordinary local allocation tax is 890 billion won. This is an increase of 542.5 billion won (11.3%) compared to the 4.7955 trillion won secured this year, marking the first time it has surpassed 5 trillion won.

Incheon City’s secured national funds have been increasing annually: 3.6775 trillion won in 2019, 4.4233 trillion won in 2020, 4.7955 trillion won in 2021, and 5.338 trillion won next year.

Next year’s national treasury subsidies by sector include 2.7723 trillion won for social welfare, 179.6 billion won for railway and road infrastructure, 113.1 billion won for eco-friendly and resource circulation, 104.9 billion won for job support, 102.6 billion won for fostering new industries such as hydrogen and bio, and 9.3 billion won for youth support.

Additionally, national direct projects include 80.3 billion won for the GTX-B line, 62 billion won for direct connection of KTX from Incheon, 49.7 billion won for Incheon New Port quay construction, 37 billion won for survey and design of SeoChang~Ansan expressway, 36.6 billion won for Incheon North Port construction, 25.5 billion won for the construction of the National Incheon Maritime Museum, 19.6 billion won for the National World Script Museum, 12.8 billion won for the new building of the Incheon Regional Tax Office, and 10 billion won for the establishment of a drone certification center.

During the National Assembly budget review process, the city actively cooperated with local district lawmakers to additionally secure budgets for major projects such as residential support funds for the West Sea 5 Islands (4.8 billion won), designation of Incheon Eco Science Park as a small and medium enterprise special zone (6 billion won), and the creation of a smart green industrial complex (12.4 billion won).

Among next year’s new projects, the city successfully persuaded the Ministry of Economy and Finance and central government agencies to include in the government budget 600 million won for the GCF (Green Climate Fund) Complex development (total project cost 263.4 billion won), 2.3 billion won for the establishment of an infectious disease specialized hospital (total 40.9 billion won, planned for public offering), 400 million won for replacement construction of a hospital ship (total 12 billion won), 1.9 billion won for construction of a marine environment purification ship (total 7.5 billion won), and 3.3 billion won for the development of Namdong National Industrial Complex (total 33.9 billion won).

Major ongoing projects such as the extension of Seoul Subway Line 7 to Cheongna (72.4 billion won), construction of the Yeongjong~Sindo Peace Road (10 billion won), and support for hydrogen and electric vehicle purchases (137.4 billion won) have also been increased, and are expected to proceed without setbacks.

Status of National Funding Secured by Year in Incheon City

The government support budget for local love gift certificates (local currency) has been increased from the initial 240.3 billion won to 650.3 billion won, with detailed support amounts to be finalized later through consultation with the Ministry of the Interior and Safety. Incheon e-eum is expected to increase from 29.2 billion won to over 70 billion won, but this falls significantly short of the 114.4 billion won requested by Incheon City.

Among local allocation tax (ordinary local allocation tax 97% + special local allocation tax 3%) provided to financially deficient local governments with a fiscal capacity index below 1, the ordinary local allocation tax has secured a record high of 890 billion won next year. The city cited factors for the increase in ordinary local allocation tax including the expansion of demand from the foreign population, exclusion of penalties for unpaid consumption tax on smuggled cigarettes, and additional discovery of safety management target facilities.

Incheon City’s ordinary local allocation tax has shown steady growth with an average annual increase rate of 14.3% since the 7th term of the mayoral administration, ranking second highest among special/metropolitan cities after Ulsan (15.5%).

Mayor Park Namchun of Incheon said, "The achievement of securing 5 trillion won in national funds is the result of persuading central government ministries about the necessity of projects even before the government budget was formulated and joining forces with local lawmakers. Since this budget was secured for citizen happiness and the future development of Incheon, we will carefully manage and proceed without any setbacks."

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