Jindo-gun Begins Formulating Tight Budget with Structural Adjustment of Next Year's Expenditure Budget

Published 04 Oct.2023 14:39(KST)

Deterioration of Fiscal Conditions Due to Expected Decrease in Local Allocation Tax

Jindo-gun, Jeollanam-do has begun formulating a tight fiscal budget through intensive expenditure budget restructuring to minimize the impact on local finances caused by this year’s reduction in government local allocation tax.

According to the county on the 4th, the ordinary local allocation tax is distributed to local governments at 19.24% of domestic tax revenue, but this year, with an expected tax revenue decrease of 54.8 trillion KRW, Jindo-gun’s allocation tax reduction is projected to reach 44.5 billion KRW.

Jindo-gun Begins Formulating Tight Budget with Structural Adjustment of Next Year's Expenditure Budget

Furthermore, a record-level decrease is expected next year as well, making prompt action necessary.

Accordingly, Jindo-gun plans to conduct performance evaluations of local subsidies, and if effectiveness is minimal, to reconsider and cut them from the ground up. It will also suppress budget allocation for unnecessary new projects deemed inefficient, promoting high-intensity structural adjustments.

A spokesperson from Jindo-gun’s Planning and Public Relations Office stated, “Due to the ongoing economic downturn, a sharp decrease in next year’s local allocation tax amount is becoming apparent. Structural adjustments for projects with insufficient effects and those repeated annually will be a necessity, not a choice.”

County Governor Kim Hee-su said, “By the end of August, we were selected for 48 public contest projects including the ‘Jeonnam-type Balanced Development 300 Project with 30 billion KRW’ and the ‘Humanities Healing Tourism Route Landmark Project with 15.8 billion KRW,’ securing a record-high 91.4 billion KRW in national and provincial subsidies. Going forward, through public contests related to regional issues, we plan to secure about 120 billion KRW in national and provincial subsidies by the end of the year, which will greatly support Jindo-gun’s finances, which have low fiscal independence.”

He added, “Despite difficult financial conditions, we will actively reflect projects that benefit many residents such as improving conditions for the underprivileged, socially vulnerable, and addressing residents’ inconveniences, as well as projects necessary for revitalizing the local economy. We will do our best to realize ‘Jindo, a good place to live where residents are the owners.’”