Gyeonggi Province Compiles 33.2 Trillion Won Supplementary Budget...Overcoming COVID-19 and Flood Damage, Revitalizing Economic Capillaries

[Suwon Ilbo=Reporter Park No-hun] Gyeonggi Province has compiled a second supplementary budget of 33.2 trillion won to overcome COVID-19 and flood damage. To revitalize 'economic capillaries,' the province will invest 60.3 billion won to expand local currency issuance and spend 58.1 billion won to promote Gyeonggi-style New Deal projects. It will allocate 23.7 billion won for river maintenance to recover from and prevent flood damage, and 9.5 billion won to establish a COVID-19 medical infrastructure system.

Gyeonggi Province submitted the second supplementary budget proposal containing these measures to the Gyeonggi Provincial Assembly on the 21st. This is 4.2222 trillion won more than the first supplementary budget of 29.8 billion won in 2020, with an increase of 4.2053 trillion won in the general account and 16.9 billion won in special accounts.

Looking at this supplementary budget, while local tax revenue decreased, strong budget restructuring was implemented as more projects requiring budget allocation, including COVID-19 and flood recovery, emerged.

Through budget restructuring—including execution surpluses generated from the province's own business implementation results, event-related expenses for projects that are difficult to pursue due to COVID-19, and travel expenses difficult to execute under domestic and international conditions—the province secured 114.6 billion won in resources and 200.9 billion won in provincial funds, including provincial fund refunds from 2019 fiscal year settlement results.

This supplementary budget was compiled with emphasis on ▲revitalizing economic capillaries to boost the local economy ▲strengthening safety foundations including COVID-19 response ▲enhancing citizens' transportation welfare ▲realizing fair Gyeonggi as a core value of provincial administration.

Specifically, 176.3 billion won will be invested to revitalize economic capillaries and recover the economy.

Notably, ▲60.3 billion won for expanding issuance of proven Gyeonggi local currency ▲58.1 billion won for Gyeonggi-style New Deal projects alongside the central government's digital+green New Deal initiatives ▲21.9 billion won for traditional market revitalization are each reflected.

Regarding expanded local currency issuance, as the existing 10% incentive provided through national funds is expected to be exhausted by October, the province plans to urgently allocate 12.5 billion won in provincial funds to continue providing a 10% incentive when charging local currency.

Second, 114.6 billion won will be invested to establish a foundation for citizen safety from COVID-19 and flood damage from the August downpours. The province has allocated 15.9 billion won in provincial funds for stable operation of Gyeonggi Medical Center, a COVID-19 dedicated hospital, while allocating 9.5 billion won to establish a COVID-19 medical infrastructure system.

For recovery from the August downpours and prevention of future damage, a total of 23.7 billion won is allocated for river maintenance and upkeep, and 11.2 billion won in budget for quarantine and damage relief for African swine fever, which still maintains a 'critical phase' status, particularly in northern Gyeonggi regions.

This supplementary budget includes 19.8 billion won in disaster and emergency reserve funds for the first time in Gyeonggi Province's history. The disaster and emergency reserve fund is designed to respond swiftly to disaster situations compared to general budget allocation and is expected to be used mostly for COVID-19 response and flood damage recovery.

Third, 136.8 billion won in total budget will be invested to enhance citizens' transportation welfare. Specifically, ▲18.5 billion won for establishing a transportation company to improve transportation convenience ▲9.9 billion won for Gyeonggi-style public bus operation support ▲24.5 billion won for installing unmanned enforcement equipment and road improvement projects for pedestrian safety including children ▲49.9 billion won for major road construction and expansion projects to accommodate driver convenience in the non-face-to-face era are additionally allocated.

In particular, of the 49.9 billion won invested in road construction and expansion projects, 36.5 billion won is concentrated in northeastern Gyeonggi regions, which suffer from inconvenient public transportation networks and underdeveloped road conditions, and is expected to greatly help improve transportation environment in the area.

Fourth, a total of 4.3 billion won is allocated, including 3.3 billion won for public digital SOC (social overhead capital) infrastructure construction and 400 million won for establishing fair procurement systems, to realize 'fairness,' a core value of the 7th civilian administration of Gyeonggi Province.

Choi Won-yong, director of Gyeonggi Province's Planning and Coordination Division, said, "With COVID-19 spreading again and flood damage adding to the situation, diverse financial support for livelihood stability is urgent," and added, "Once the supplementary budget proposal submitted today is approved, we will make our best efforts to ensure seamless implementation and immediate execution to benefit the lives of our citizens."

The supplementary budget proposal will be reviewed at the Gyeonggi Provincial Assembly's 346th regular session scheduled from September 1st to 18th.