GOYANG — The city of Goyang in Gyeonggi Province will draw up its 2027 budget within the limits of available funds and review existing programs from scratch, as spending grows while revenue gains slow.
Goyang Mayor Min Kyung-sun reviewed next year's revenue outlook and fiscal conditions at the second August city administration meeting, held on the 26th in the main conference room of Goyang City Hall. "We need to come up with a budget plan that makes efficient use of limited resources," the mayor said.
Kang Bok-sun, head of the city's tax administration division, projected that local tax and non-tax revenue would rise on the back of the Changneung new town development, new apartment construction and inflation. But with the net surplus from the previous year shrinking, total revenue next year is expected to grow only about 2% from this year.
Spending has also risen 14.2% over the past five years, while funds the city can direct to its own projects account for just 16% of the total budget. Expanded welfare, higher personnel costs, the burden of projects requiring matching funds from the central and provincial governments, large-scale investment projects and the province's fiscal crisis have all weighed on the budget.
The city will build next year's budget on three principles: keeping spending within available funds, reviewing programs from scratch, and targeted restructuring. It will also apply a pay-go rule, under which new programs require either adjustments to existing programs or outside funding.
The mayor ruled out uniform cuts. "We must not cut every program across the board," Min said. "Priorities should be set based on how necessary and urgent a program is, and on the effect residents can feel." The mayor added, "Each department should review on its own any program with a low execution rate or diminishing returns."
Investment will instead be strengthened in future growth areas such as job creation and building up the city's self-sufficiency. "Population decline, aging and rising welfare spending are also tied to the city's lack of self-sufficiency," Min said. "If we can create a virtuous cycle in which jobs and population grow together, we can change the city's fundamentals."
On the provincial government's fiscal emergency, the mayor called for consultations with the province that reflect Goyang's own fiscal conditions while ensuring the city's pending projects are not derailed.
On pending issues including group petitions over railway projects, the mayor said, "I have been meeting Kim Yong-seok, chairman of the Metropolitan Transport Commission, and Park Hong-keun, minister of planning and budget, to convey Goyang's position." The mayor added, "Many of these matters need to be settled by October at the earliest and within the year at the latest, so please focus on advance review and risk management."
Min also stressed communication with the city council ahead of budget deliberations. "Senior officials need to fully explain to the council why programs are necessary and justified, so that the budget can be drawn up smoothly and the benefits can reach residents," the mayor said.
