Fiscal Deficit Was Caused by Changes in Government Policy

Gyeonggi Province has issued a rebuttal statement after Kim Sang-gon, former superintendent of education who declared his candidacy for Gyeonggi Province governor on a new unified party platform, made remarks about the province's fiscal difficulties.

On the 11th, the province issued a statement under the name of Nam Chung-hee, Vice Governor for Economy, titled "Position on Former Education Superintendent Kim's Criticism of the Province's Fiscal Deficit," stating "While we understand the critical interest in the province's finances, facts must be grasped accurately and conveyed correctly," and emphasized "If this is political maneuvering despite knowing the facts, it must be corrected."

The province stated "The fiscal deficit amount disclosed by the former education superintendent is 1.5 trillion won, of which 610.2 billion won has resulted from tax revenue shortfalls and other factors," and countered "The revenue deficit was caused by policy changes such as the cliff in real estate transactions and the government's unilateral reduction in acquisition tax rates, not from poor fiscal management."

It further stated "The remaining unpaid legally mandated expenses have all been resolved through last year's supplementary budget and this year's main budget," claiming "We overcame the fiscal crisis through intensive structural reforms without issuing local government bonds."

The province noted "A frugal housewife balances household income and expenses without going into debt, but we cannot allow criticism as if we had taken out a 1.5 trillion-won loan," and pointed out "As someone who knows the province's financial situation best, this is not a responsible attitude."

The province's statement comes as the former education superintendent has repeatedly raised concerns about the province's fiscal situation through recent media interviews.

In an interview with a media outlet on the 10th, the former education superintendent said "While Governor Kim Moon-soo has worked faithfully, it is regrettable that he has caused a fiscal crisis," and stated "There is a fiscal deficit of as much as 1.5 trillion won, and we are contemplating comprehensive financial innovation."