Gyeonggi Province Establishes Task Force to Overcome Fiscal Crisis; Discusses Revenue and Institutional Reforms

Following Governor Choo Mi-ae's declaration of a 'Fiscal Emergency' situation in Gyeonggi Province, the 'Dedicated Organization for Fiscal Crisis Overcome Strategy Task Force (TF)' established within the province has begun full-scale operations.

The dedicated organization plans to develop a comprehensive strategy for normalizing the province's finances by the end of August, ranging from short-term expenditure restructuring to mid-to-long-term revenue and institutional reforms.

On the 10th, Gyeonggi Province held the first meeting of the Fiscal Crisis Overcome Strategy Task Force chaired by Vice Governor for Economy Joo Hyung-chul at the Gyeonggi Provincial Government, where such response strategies were discussed.

Vice Governor Joo Hyung-chul stated, "The Governor declared a 'Fiscal Emergency' situation in Gyeonggi Province on August 5th. This is not merely a one-year problem, as conditions will not improve next year either; if we do not take action now, the crisis will become permanent. To find the right solution, we must accurately identify the causes. The most fundamental cause is an outdated local finance system."

He explained that as society enters the AI era, the forms of industry and the way added value is created have changed, and welfare demand has surged, yet the local finance system remains geared toward the development era.

Vice Governor Joo further stated, "The Governor has instructed the Task Force to be immediately activated to develop effective countermeasures by the end of this month. We will establish an effective implementation system within three weeks to protect the lives of Gyeonggi residents and the province's future," presenting four core tasks.

The four core tasks are: △Strong business and fiscal restructuring △Revenue expansion in the AI era △Strengthened solidarity and cooperation △Voluntary cost-cutting by all stakeholders.

Examining the main contents by task, first, the province will embark on strong and bold business and fiscal restructuring. The 2027 regular budget will be comprehensively reviewed within the available financial resources, and the division of roles between the central government, municipal governments, the private sector, and Gyeonggi Province will be readjusted. Special accounts, funds, and public institution resources will also be reviewed. The province plans to protect livelihood and safety projects through 'precision adjustment' without mechanical across-the-board cuts, and maintain the level of public services through innovation in business methods.

Second, the province will establish standards suited to the AI era and expand revenue. It will redesign the structure of affairs and financial distribution between the national and local levels to enable proper execution of local affairs for future growth, and establish a principle that when national affairs are transferred to local governments, finances follow. Additional discovery of local taxes and non-tax revenues, and recalculation of tax revenues that can be secured within the year are also included in implementation tasks.

Third, the province will cooperate with 31 municipalities and other metropolitan local governments facing the same issues to urge the central government and National Assembly to revise the outdated finance system. The province will communicate with the Gyeonggi Provincial Assembly and share progress with residents as processes proceed.

The final task is voluntary efforts by all public officials. All members of the provincial government and public institutions are to collectively concentrate their capabilities as fiscal subjects, eliminating habitual waste factors and ensuring budgets are timely invested in livelihood and future investments.

The Fiscal Crisis Overcome Strategy Task Force is led by Vice Governor Joo Hyung-chul as chairman, with a total of 50 participants including division heads under the Planning and Coordination Office and external expert advisory groups. It operates through four subcommittees: △Expenditure sector △Revenue and tax reform △Communication and publicity △External cooperation.

The province will hold a second meeting on the 13th to complete response measures by the end of August, and plans to launch the '(Temporary Name) Fiscal Crisis Overcome Implementation Committee' in September to continue reviewing implementation matters.