GOYANG — The city of Goyang in Gyeonggi Province has launched a sweeping budget overhaul ahead of drafting its 2027 general budget, after spending requests exceeded available revenue by 365 billion won ($262 million). With Gyeonggi Province also facing deteriorating finances, cuts to and the phasing out of provincially subsidized projects appear unavoidable, pointing to an aggressive round of spending reductions.
The city said on the 23rd that it held an emergency spending adjustment meeting for the 2027 general budget over two days beginning Sept. 21, chaired by First Vice Mayor Park Won-seok. The meeting was arranged on short notice after spending requests from city departments rose sharply even as revenue declined.
On a general account basis, Goyang's projected revenue for 2027 fell 0.3% from a year earlier, while departmental spending requests rose 12.4%. As a result, the city must immediately cut 365 billion won in spending that exceeds projected revenue.
Compounding the problem, Gyeonggi Province is also under fiscal strain and has signaled that it will suspend or reduce support for provincially subsidized projects, sharply increasing pressure on the city's own finances. Goyang said it will review from scratch whether to scale back or fully terminate projects that lose provincial funding, rather than covering the gap with municipal money. That raises concerns about cuts to public services that residents feel most directly, including welfare, education and everyday amenities.
The city also plans to block new projects outright given the shortage of funds and to strictly review requests to increase spending on existing programs. Spending on events and research contracts will be minimized after a reassessment of whether they are needed, while recurring costs such as operating expenses will be frozen at the previous year's level.
"This is a severe reality in which projects that lack funding must be scaled back or halted, no matter how necessary they may be," Park said. "Even so, we will make sure that spending on residents' safety and essential livelihood needs proceeds without disruption."
