Ministry of the Interior and Safety Allocates 66.6 Trillion Won in General Grants This Year

City 25.9 trillion won, County 21.6 trillion won,
Province 11.1 trillion won, Metropolitan City 8.1 trillion won

[Image source=Yonhap News]

[Asia Economy Reporter Kiho Sung] The Ministry of the Interior and Safety announced on the 3rd that it finalized the allocation of the ordinary local allocation tax budget of 66.6 trillion KRW for this year by local governments on December 30th last year and distributed it to 170 local governments nationwide.

The ordinary local allocation tax supports local governments that cannot cover costs solely through their own revenues such as local taxes, so that citizens can enjoy high-quality administrative services anywhere in the country. According to this year's ordinary local allocation tax calculation results, the total demand of local governments nationwide was 147.8 trillion KRW, an 18.1% increase compared to the previous year.

On the revenue side, ordinary local allocation tax is further supplemented to metropolitan cities where acquisition tax and local income tax revenues are expected to decrease due to a contraction in real estate transactions and economic slowdown. The calculation reflected the Ministry of the Interior and Safety’s 'Ordinary Local Allocation Tax Innovation Plan,' which focuses on three directions: revitalizing the regional economy, responding to demographic changes, and strengthening fiscal soundness.

Looking at the distribution results of the ordinary local allocation tax by local government, cities received 25.9 trillion KRW (38.8%), counties 21.6 trillion KRW (32.5%), provinces 11.1 trillion KRW (16.6%), and metropolitan cities 8.1 trillion KRW (12.1%).

Minister of the Interior and Safety Sangmin Lee said, “The ordinary local allocation tax is a key resource supporting the realization of a livable local era anywhere in the country,” and added, “I urge each local government to efficiently invest resources where necessary to actively improve residents’ living environments and prepare regional growth engines.”

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