Boseong-gun Actively Responds to Decrease in Local Allocation Tax with Final Supplementary Budget Adjustment

150 Billion Won Injected into Fiscal Stabilization Fund

Ongoing Projects Proceed Without Disruption

Boseong-gun, Jeollanam-do announced that it will actively respond to the decrease in local allocation tax caused by the government's tax revenue shortfall through the third supplementary budget formulation work of this year.

The budget for administrative operating expenses will be frozen as a principle, and to minimize carryover and unused funds, budgets that cannot be executed within the year will be cut to maintain a sound fiscal policy.

[Photo by Boseong-gun]

Large-scale projects that will become future growth engines for Boseong, as well as projects for stabilizing people's livelihoods and revitalizing the local economy, will be actively supported.

The shortfall in local allocation tax due to the government's tax revenue shortage will be compensated by utilizing the financial stabilization fund that Boseong-gun has accumulated so far, and ongoing projects will be promoted without interruption.

This year, Boseong-gun secured a record high of 338.5 billion KRW in local allocation tax, but due to the government's tax revenue shortfall, it was decided to allocate 283.7 billion KRW, which is 54.8 billion KRW less than originally planned.

The local allocation tax is an important resource accounting for more than 50% of the county's revenue, and due to the decrease in allocation tax, each local government is implementing stringent fiscal austerity measures.

Since 2019, Boseong-gun has been accumulating a financial stabilization fund and currently holds 150 billion KRW, which is the largest amount relative to budget size in Jeollanam-do. In addition, through efficient management such as subscribing to high-interest deposit products, it earned 5.1 billion KRW in interest income.

Boseong-gun has recorded an average annual budget growth rate of around 9% since 2018 and has maintained county finances without any debt, being evaluated as an excellent local government in terms of fiscal soundness.

Kim Cheol-woo, the governor of Boseong-gun, said, “The 8th elected term is an important period when projects continued from the previous term bear fruit. Based on the excellent financial foundation built so far, we will successfully complete major large-scale projects and lead uninterrupted development of Boseong.”

Meanwhile, the financial stabilization fund is operated for the purpose of adjusting fiscal revenue imbalances between fiscal years and managing finances stably by reserving part of revenue and surplus from settlements.

Boseong = Asia Economy Honam Reporting Headquarters, Reporter Park Cheon-seok hss79@asiae.co.kr

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