Muan-gun Enters Emergency Financial System Due to 55 Billion KRW Reduction in Local Allocation Tax

Published 26 Sep.2023 15:28(KST)

"Preparing for the Largest Fiscal Shock in History"

Muan-gun, Jeollanam-do (Governor Kim San) announced on the 26th that it will undertake a high-intensity budget restructuring to overcome the greatest financial difficulties in its history.

Recently, the government announced that due to a decrease of 59 trillion won in national tax revenue this year, local allocation tax will be reduced by 11.6 trillion won.

Accordingly, the local allocation tax secured by Muan-gun is also short by 55 billion won from the initially notified 328 billion won, forcing the county to prepare for the largest financial shock ever.

An emergency meeting is being held with budget officers to respond to the reduction of local allocation tax. <br>[Photo by Muan-gun]

An emergency meeting is being held with budget officers to respond to the reduction of local allocation tax.
[Photo by Muan-gun]

Governor Kim San emphasized at the executive meeting on the 25th, “We must establish an emergency plan to offset the reduction in local allocation tax through high-intensity expenditure restructuring.”

In response, Muan-gun plans to comprehensively reexamine investment and subsidy projects from the starting point, postpone the start of construction projects that have not yet begun to next year or later, and completely cut underperforming projects that are difficult to execute within this year, adjusting unnecessary projects. The county also plans to reduce the budget scale or reschedule various events and festivals concentrated at the end of the year to next year or later.

The 2024 budget will also be subject to strong expenditure restructuring under the responsibility of department heads, cutting 10% of all budgets except for rigid expenses in line with the government’s fiscal tightening policy, and especially implementing more than a 10% financial diet on private events, subsidy projects, and private consignment projects that have been supported conventionally.

However, essential welfare budgets for vulnerable groups will be supported as usual, and projects for operating a warm and safe community, such as support for low-income households, the disabled, and elderly living alone, will be carried out without disruption.

Governor Kim San said, “All local governments are facing difficulties in financial management due to an unprecedented tax revenue shortage,” and added, “We will do our utmost with public officials to overcome the crisis so that residents’ lives and the local economy are not contracted.”