Suwon City's fiscal budget for last year totaled 1.67 trillion won based on revenue settlement results, representing a 1.3% increase compared to 2005. Per capita local tax burden for citizens stands at 393,588 won, while per capita debt is 160,000 won.
The city shows high soundness in budget execution and excellent efficiency and management capabilities in budget administration. However, measures are needed to establish fiscal management stability, including the discovery of new non-tax revenue sources.
● Revenue scale 2.5 times higher than average of other local governments… expenditures also surge
Suwon City disclosed 2007 local finance data at the end of last month. The 2006 revenue settlement totaled 1.67 trillion won, an increase of 21.9 billion won or 1.3% compared to 1.6481 trillion won in 2005. This is 2.5 times the average scale of basic local governments at 664.1 billion won.
Suwon City's revenue settlement has shown an increasing trend from 1.3895 trillion won in 2002 to 1.5625 trillion won in 2003 and 1.7493 trillion won in 2004. However, it decreased to 1.6481 trillion won in 2005 due to sluggish regional economy and domestic demand. In 2006, revenue increased slightly again due to factors such as higher fuel taxes resulting from rising oil prices.
Expenditures totaled 1.2013 trillion won, a 2.2% increase or 26.9 billion won compared to 1.1744 trillion won in 2005.
Expenditures increased from 790 billion won in 2002 to 845.9 billion won in 2003, then surged to 1.1215 trillion won in 2004, marking the first entry into the 1 trillion won era. This was followed by 1.1744 trillion won in 2005 and 1.2013 trillion won in 2006, showing continued growth.
● Debt also increases annually, per capita debt of 160,000 won
Last year's total debt reached 305.2 billion won, comprised of general account debt of 286.4 billion won and special account debt of 18.7 billion won.
Based on 124.4 billion won in 2002, debt slightly decreased to 117.7 billion won in 2003. In 2004, it surged to 224.3 billion won, a 90.5% increase. This was followed by 292.4 billion won in 2005 and 305.2 billion won in 2006, increasing annually.
This increase in debt results from large-scale road construction projects including road development between Suwon Station bypass and Homaesilll IC.
However, since national treasury repayment of 138.7 billion won is included, the actual net debt burden borne by the city is 166.5 billion won, equivalent to 160,000 won per citizen.
● 14 types of funds totaling 70.2 billion won under management
Funds managed for specific projects outside the revenue and expenditure budget total 14 types and 70.2 billion won.
Among these, the Small and Medium Enterprise Development Fund accounts for 29.2 billion won, the Disaster Management Fund 14.4 billion won, the Senior Welfare Fund 5.4 billion won, the Women's Development Fund 4 billion won, and the Culture and Arts Development Fund 3.8 billion won, which are relatively large-scale.
These funds have increased from 54.6 billion won in 2002 to 58.4 billion won in 2003, 63.2 billion won in 2004, 68.4 billion won in 2005, and 70.2 billion won in 2006.
● Budget efficiency and management capability excellent, but fiscal transparency improvements lacking
According to the Ministry of Interior and Safety's fiscal analysis and diagnosis results, delinquent local tax collection is being conducted very efficiently, and the gap between initial and final budgets is small. Budget formulation efficiency and budget management capability were evaluated as excellent.
However, measures are required to establish fiscal management stability, including the discovery of non-tax revenue sources. Analysis also shows that citizen accessibility for enhancing fiscal transparency through financial disclosure is insufficient.
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