600 Billion Won Cut in Government Grants and Weak Revenue Structure... Wando County Struggles Under 'Triple Burden'

Triple Burden of Grant Cuts and SOC Costs Forces 21 Billion Fund Transfer
On Council Communication Concerns: "We Will Establish a Cooperation System"

Regarding Wando County, South Jeolla Province, transferring about 21 billion won from the living waste treatment facility fund to the general account in its 2025 supplementary budget, the county cited the approximately 60 billion won cut in government grants since the launch of the Yoon Suk Yeol administration as the direct cause of worsening finances. The county explained that a triple burden—comprising a weak internal revenue structure, external shocks, and rising fixed expenditures—forced this emergency measure of using designated funds.

On July 20, at an extraordinary session of the Wando County Council, Hee-seok Han, Director of the Planning and Budget Office, responded to questions from Councilor Ji-min, revealing the fiscal crisis faced by the county.

At the 2nd plenary session of the extraordinary meeting held in the Wando County Council plenary hall, Heeseok Han, Director of Planning and Budget Office (left), is responding to Councilmember Jimin's questions about county administration. Provided by Wando County Council

Director Han explained, "Our county's finances have not been healthy at any point since 2023," adding, "Given our absolute reliance on government grants, no municipality in Jeollanam-do can claim to be financially stable."

The background of Wando County’s latest fund transfer (21.039 billion won) lies in structural challenges, involving a weak revenue structure, the external shock of government grant cuts, and an increase in fixed expenditure obligations. In reality, the county’s annual independent local tax revenue amounts to only 45 to 50 billion won, which makes it heavily dependent on about 300 billion won each year in general government grants.

However, with government grant allocations dropping by around 60 billion won over the past three years, the county took a severe hit, resulting in a shortage of 54 billion won in funding just for the 2025 supplementary budget. On top of that, structural burdens that are difficult to reduce have increased. Director Han elaborated, "Our revenue structure is weak, but factors such as free rural bus services, expanded welfare, and the construction of the Nowha-Sowon bridge (with an annual burden of 11 billion won) have continuously pushed up ongoing administrative and SOC (social overhead capital) demands, deepening the budget shortfall."

Assemblyman Ji-min, during the session, focused on questioning the county's initial promise to replenish the fund "within two years." In response, Director Han stated, "During the main budget review, we will first establish a fund deposit plan and then proceed with budget allocation accordingly," further pledging, "I will strive to optimize operational budgeting so that replenishment of the fund is achieved in the 2027 main budget."

Councilor Ji-min also pointed out the need to efficiently implement projects supported by national and provincial funds, considering the difficult financial conditions, as well as the lack of communication with the council.

When Councilor Ji-min requested, "Please thoroughly review project priorities to ensure that limited resources are allocated efficiently to essential projects, and do your best to secure national funding," Director Han responded, "When reviewing projects for public competitions, we prioritize areas with a higher proportion of national funding," adding, "For projects like the Regional Balanced Development program, where the county’s share reaches 70%, we are proceeding with greater caution."

Further criticism followed regarding the lack of communication with the council and promises of improvement. When Councilor Ji-min pointed out, "When holding briefing sessions on various research projects closely connected with certain regions, local council members are not notified in advance about schedules or major content, making it difficult to handle civil complaints," Director Han pledged active measures for improvement.

Director Han promised, "From now on, for any briefing sessions on research projects related to local districts, we will share the schedule and main content in advance with the relevant council member and ensure they can attend," vowing to establish a system of 'advance notice and cooperation' that all departments can use as a standard practice.

This content was produced with the assistance of AI translation services.