Anseong-si, Emergency Financial Management System in Response to Tax Revenue Decline

Mayor Kim Bora: "Doing Our Best to Prevent Citizen Life and Local Economy from Shrinking"

On the 10th, Anseong City in Gyeonggi Province announced that it will undertake a high-intensity budget restructuring to prepare for a decrease in tax revenue due to a reduction in local allocation tax.

The city explained that due to the government's announcement of a cut in local allocation tax, the local allocation tax secured by Anseong City will decrease by 39.5 billion KRW from the initially notified 243.6 billion KRW.

Due to the decline in real estate market conditions leading to a decrease in Gyeonggi Province's revenue, the adjustment grant is also expected to be reduced by 18.3 billion KRW from the original 111.5 billion KRW.

Accordingly, the city announced that a total tax revenue decrease of 57.8 billion KRW is expected by the end of this year.

The city plans to first conduct a comprehensive review of investment and subsidy projects from scratch, postponing the start of construction projects to next year or later, and completely cutting projects that are difficult to execute within this year, thereby adjusting unnecessary and non-urgent projects. Along with this, the city also plans to reduce the budget for various events and festivals scheduled for the end of the year or postpone them to next year or later.

Additionally, a full investigation will be conducted on private events, subsidy projects, private consignment projects, and grants to block insufficient projects from the budget allocation review stage, aiming to reduce unnecessary financial waste.

However, the city clarified that essential welfare budgets for vulnerable groups will be supported as usual, ensuring that support for low-income groups, persons with disabilities, elderly living alone, welfare facilities, and payment of wages to public service workers will proceed without disruption.

Kim Bora, Mayor of Anseong City, said, “All local governments are experiencing difficulties in financial management due to an unprecedented tax revenue shortage,” and added, “We will do our utmost together with public officials to overcome this crisis so that citizens’ lives and the local economy are not contracted.”

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