Gwangju City Councilor Park Mijeong "Concerns Over Tax Revenue Shortfall Amid Impeachment Crisis"

Real Estate Recovery Next Year and 2.1% Economic Growth Rate Reflected
"Excessive Optimism Threatens Local Fiscal Stability"

Park Mi-jung, Gwangju City Council Member.

Amid the declaration of martial law and the political turmoil following the impeachment rejection, red flags have been raised over Gwangju City's revenue targets for next year.

On the 9th, Park Mijeong, a member of the Gwangju City Council (Democratic Party, Dong-gu 2), pointed out during the 2025 Gwangju City main budget review that "the national credibility has declined due to the shock of the December 3 martial law and impeachment, and the high exchange rate continues," adding, "As social and economic anxieties grow, leading to an economic downturn, there are concerns about tax revenue shortfalls."

Gwangju City submitted a draft main budget for next year totaling 7.607 trillion won, an increase of 702.7 billion won compared to the previous year. Among this, the local tax revenue target is set at 2.2025 trillion won, up 151 billion won from this year.

This budget is based on expectations of an increase of 36 billion won in acquisition tax, reflecting the volume of new apartment move-ins next year and a housing price increase rate of 10.47%. An optimistic outlook was also applied, including a 2.1% economic growth rate next year, which factors in 24.4 billion won from corporate income tax.

Councilor Park stated, "Considering the current situation, the executive branch's goals for increasing local tax revenue, non-tax revenue, and national subsidies lack realism," and added, "It is necessary to review whether the revenue projections have been properly estimated, taking into account economic forecasts and the recovery of real estate transactions."

She continued, "In last month's supplementary budget adjustment, local tax revenue was reduced by 128.4 billion won, and national subsidies were cut by 29.7 billion won," criticizing, "Due to excessive revenue projections, large-scale expenditure restructuring and the use of 71 billion won from funds were required to compensate."

Councilor Park emphasized, "Despite the expansion of Gwangju City's fiscal scale, there are 77 projects amounting to 358.2 billion won in the 2025 main budget for which the city's mandatory financial burden has not been secured," warning that "excessive optimism could threaten fiscal stability."

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