Mokpo City Enters 'Emergency Financial System' Due to Record Tax Revenue Decline Next Year

High-Intensity Expenditure Budget Restructuring Unavoidable... Avoidance of Unnecessary and Non-Essential Projects

Mokpo City is entering an emergency financial system as next year's tax revenue is expected to decrease to an unprecedented level.

According to the city on the 25th, the government announced a revised estimate of national tax revenue, which is 59.1 trillion won less than the originally expected national tax revenue for this year, and submitted a budget proposal to the National Assembly that reduces the local allocation tax by 8.5 trillion won compared to this year.

Exterior view of Mokpo City Hall

Accordingly, Mokpo City expects that the local allocation tax, which accounts for about 30% of its revenue, will decrease by more than 50 billion won next year following a 50 billion won decrease this year.

Local taxes, which are the city's own revenue, are also expected to decline due to a decrease in real estate transactions and economic recession, while non-tax revenue shows no particular factors for increase.

Therefore, the city's revenue for next year is projected to decrease by more than 100 billion won compared to this year.

On the other hand, as the expenditure demands from each department have significantly increased in preparing next year's budget, a high-intensity restructuring of the expenditure budget is inevitable.

To this end, the city plans to operate its finances with a strategy of selection and concentration by adjusting the implementation timing of pledged projects, limiting to necessary projects only, and focusing on completing ongoing projects. The city has communicated this to the departments and requested a review of next year's expenditure demands.

A city official stated, "Due to the unprecedented decrease in tax revenue, a reduction in the budget size is inevitable," and added, "We will focus on essential projects and efficiently prepare the budget to strive for financial stability."

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