SUWON — The Gyeonggi branch of the Korean People's Artist Federation on the 28th issued a statement on Gyeonggi Province's second supplementary budget for 2026, saying that "deteriorating fiscal conditions and a 'fiscal crisis' must be viewed separately," and demanded the province disclose the criteria and fairness standards behind its cuts to culture, sports and tourism spending.
The group first acknowledged that the province's worsening fiscal position is hard to deny. Citing a 300 billion won shortfall in local tax revenue caused by a slowdown in property transactions, along with debt burdens and shrinking available funds, Gyeonggi Province has declared a "fiscal emergency" and is pushing ahead with 546.5 billion won in spending restructuring. The statement acknowledged that "reviewing the spending structure and readjusting fiscal management is the responsibility of local government."
The group drew a line, however, saying that "conditions having become difficult and being in an objectively defined state of 'fiscal crisis' are two different things." According to the group, Gyeonggi Province's fiscal independence ratio for 2026 stands at 44.4%, down sharply from 55.7% in 2022, but still above the 32.3% average for local governments of the same type. Its fiscal autonomy ratio is also 44.4%, exceeding the 42.0% type average. The debt ratio against the 2025 budget, presented during provincial council deliberations, was 12.86%, below the 15.52% average for cities and provinces nationwide. Under the enforcement decree of the Local Finance Act, the threshold for fiscal caution is above 25% and for fiscal crisis above 40%.
The group noted that "a single debt ratio cannot determine the overall fiscal condition, and revenue declines, wider use of funds and future repayment burdens must be considered together — but the phrase 'fiscal emergency' should not be treated as identical to a legally and objectively defined 'fiscal crisis.'"
The supplementary budget totals 42.242 trillion won across general and special accounts, up 562.1 billion won from the existing budget. Spending under the Culture, Sports and Tourism Bureau, however, was submitted at 554.87157 billion won, down 53.61851 billion won, or 8.8%.
On this point, the group said that "the revenue increase is merely the result of changes of differing nature — state subsidies, non-tax revenue, local grant taxes and deposits from the integrated fiscal stabilization fund — and does not represent expanded fiscal capacity. Conversely, the 8.8% cut to the culture sector is not a given either." It called on the province to explain the principles behind the reductions and how they compare with other sectors.
The group was particularly critical that opportunity income programs for artists and athletes, community sports for people with disabilities, the Gyeonggi Culture Pass, contributions to public institutions and international cultural events were among the main targets of the cuts. Scaling back policies already in operation midway through, it said, "is a matter of trust toward the artists and residents who prepared based on the administration's plans." It added that if cultural and artistic outcomes are assessed only by quantitative indicators such as execution rates, participant numbers and coupon usage, the sector will be first in line for cuts whenever finances tighten. It proposed developing public-value assessment criteria covering broader cultural access, cultural diversity and the sustainability of the arts ecosystem.
The group also warned that comparing local government finances to a household budget can create the impression that local bonds, internal fund transactions and repayment burdens are all a single "debt." It urged the province to disclose separately its debt and fund status, revenue outlook and the scale of available resources. It asked the provincial council to conduct "priority screening that goes beyond negotiating numbers for increases and decreases, examining program by program whether a project is already under way, whether irreversible damage would result and whether an objective policy evaluation was conducted."
Finally, the group argued for putting into real operation the cultural autonomy committee under Article 14 and the cultural policy consultative body under Article 22 of the Gyeonggi Province Basic Ordinance on Cultural Autonomy, so that information can be shared with those on the ground and adjustment principles discussed jointly, starting with the 2027 main budget. "The pattern of finalizing the budget and then notifying us must not be repeated," the group said. "Cutting culture and the arts first cannot be the self-evident answer."
