Seoul City's Budget Shrinks for the First Time in 13 Years... 'Road Traffic' Decreases, 'Walking with the Vulnerable' Increases

The Seoul Metropolitan Government has drafted next year's budget at 45.723 trillion won, a decrease of 1.4675 trillion won compared to the previous year. This is the first time in 13 years since 2011, right after the global financial crisis, that Seoul's budget has been reduced. However, the budget related to 'walking together with the vulnerable,' emphasized by Mayor Oh Se-hoon, has increased.

On the 1st, Seoul announced that it submitted the '2024 Seoul City Budget Proposal' containing these details to the Seoul Metropolitan Council.

[Image source=Yonhap News]

Of the 45.723 trillion won in next year's budget, the net budget size excluding 4.5105 trillion won of inter-account transfers that were double-counted is 41.2125 trillion won, a decrease of 370.5 billion won compared to the previous year (41.583 trillion won). The actual execution budget, excluding statutory mandatory expenses, is 28.903 trillion won.

The revenue budget for city taxes is estimated at 24.2353 trillion won, down 646.5 billion won from this year due to a slowdown in corporate performance and a downward stabilization of the real estate market. Excluding inter-account transfers and statutory mandatory expenses, the budget for the '8 major city administration sectors' was set at 25.6912 trillion won, a total decrease of 17.77 billion won (0.7%) compared to the previous year, with reductions in five sectors except for social welfare, culture and tourism, and general administration, due to the revenue decline.

Next year's Seoul budget will be focused on three major investment priorities and 13 core tasks. First, to strengthen the 'walking together with the vulnerable' project, which is Mayor Oh's administrative goal, 13.5125 trillion won will be invested, an increase of 302.5 billion won from the previous year. Major projects include the Secure Income program (15 billion won), redevelopment and reconstruction rental housing supply (381.3 billion won), and the Seoul Youth Culture Pass project (6.8 billion won), among others.

2.1376 trillion won will be invested in safety and transportation sectors. Key projects include the commencement of the deep underground rainwater drainage tunnel (104.9 billion won), installation of escalator reverse operation prevention facilities at subway stations (11.9 billion won), and the pilot project for the Climate Companion Card (40.1 billion won). Additionally, 25.4 billion won and 20.8 billion won will be allocated respectively for the creation of Seoul Port and the new introduction of River Bus as part of the 'Hangang Renaissance 2.0' initiative.

Furthermore, the budget includes an expansion of parental benefits (575.2 billion won) to overcome low birth rates and new support covering 90-100% of the out-of-pocket costs for childcare services (700 million won). The veteran honor allowance (68.4 billion won) provided to war veterans will be expanded up to 150,000 won per month, and a new veterans' welfare allowance (3.4 billion won) will be established for 2,800 non-combat disabled veterans. To facilitate the mobility of Seoul's reservists, a bus for reservist training grounds will also be supported with 1.3 billion won to the relevant military units.

Meanwhile, the largest budget cut compared to this year is in the 'road traffic' category. Considering the revenue increase from fare hikes, financial support for public transportation has been reduced. Also, reflecting the actual required expenses based on the progress of railway construction projects in Byeollae, Jinjeop, and Dongbuk Line, and a decrease in fuel subsidies for the transportation industry, the budget decreased by 308.8 billion won (-11.8%) compared to the previous year.

Mayor Oh said, “Despite difficult financial conditions, we have evenly allocated financial resources for walking together with the vulnerable for Seoul's future, a safe Seoul where citizens feel secure, and an attractive Seoul of creativity and innovation. Regardless of any situation, we will firmly continue the 'walking together with the vulnerable' projects promised to citizens and spare no effort to create a safe and attractive city.”

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