Incheon proposes major fiscal reform to restructure welfare spending

The Incheon Fiscal and Budget Reform Task Force has concluded its 80-day mandate, proposing a major restructuring of the city's finances to ensure long-term stability. The task force recommended several key principles, including capping social welfare spending at 45% of the total budget and limiting city-funded cash welfare programs to 5% of its own revenue.

A central part of the proposal involves redesigning cash-based support programs to avoid duplication with expanding national government subsidies. Specific recommendations include the phased abolition of pregnant women's transportation support by 2027 and the gradual reduction of the 'Angel Support Fund' for children. The city estimates these measures could reduce the fiscal burden by approximately 374.9 billion won over the next four years.

The plan also emphasizes shifting focus toward future growth, suggesting that at least 10% of the budget be maintained for infrastructure, transportation, and industry. To manage this, the city will regularize fiscal strategy meetings led by the mayor and implement a 'discretionary project total limit system.'

The People Power Party Incheon City Chapter has criticized the recommendations, arguing that the plan shifts the financial burden onto citizens by reducing visible support while potentially increasing public utility fees. They have called for the city administration to demonstrate its own efforts to reduce waste before asking citizens to tighten their belts.