Gyeonggi Province cuts 546.5 billion won in budget due to tax deficit

Gyeonggi Province has announced a major expenditure restructuring in its second supplementary budget proposal, cutting a total of 546.5 billion won to address a 300 billion won deficit in local tax revenue caused by the real estate market slump.

The cuts have significantly impacted social overhead capital (SOC) projects in northern Gyeonggi, specifically in Yangju and Pocheon. In Yangju, the 19 billion won compensation budget for the Bugok-Bugok local highway construction has been entirely cut, delaying land compensation and commencement. In Pocheon, 13.7 billion won was removed from various road expansion projects, including the Gunnae-Naechon road and the Hasongwoo-Masan road, as well as 1 billion won for river maintenance.

Local officials and provincial council members have expressed strong opposition, arguing that these cuts will stall essential infrastructure development and ignore the needs of northern Gyeonggi residents. The budget proposal is scheduled for deliberation during the Gyeonggi Provincial Council's extraordinary session starting September 1.