Chu Mi-ae: "Urgent Fiscal Reform Needed for Locally-Led Growth... Excessive Burden on National Firefighter Costs"

Chu Mi-ae, Governor of Gyeonggi Province, argued that the financial structure between the central and local governments must be fundamentally overhauled to enable growth led by local governments.

On August 8th, Governor Chu posted on her social media, emphasizing the urgency of fiscal reform for locally-driven growth. She pointed out Gyeonggi Province's ongoing financial burden, noting that the province continues to shoulder a significant portion of costs related to firefighters, even after their transition to central government employees.

According to Governor Chu, over the 10 years since firefighters became national government employees, the number of firefighters assigned to Gyeonggi Province has increased by 1.4 times, while related costs, including personnel expenses, have grown by 1.8 times.

Currently, Gyeonggi Province pays more than 1.5 trillion won for expenses related to approximately 11,000 national firefighters. Of this amount, around 1.05 trillion won is allocated for personnel, but central government support is limited to about 80 billion won, according to Governor Chu. She also argued that for the remaining 400 billion won in other operating costs, the central government's support is just 30 billion won.

Gyeonggi Province Governor Choo Mi-ae's post on her SNS on the 8th

Governor Chu stated, "It is only right that the central government covers the personnel costs of national civil servants," adding, "But in reality, the situation is quite the opposite."

She further raised concerns about the overall fiscal structure of Gyeonggi Province. Governor Chu explained that, out of the province's total budget of around 40 trillion won, projects entrusted and supported by the central government account for more than half, and that over 1 trillion won from the remaining 16 trillion won still goes toward paying national firefighters' salaries.

She also pointed out that, even if local finances worsen, Gyeonggi Province is not eligible for local allocation tax support from the central government. Governor Chu said, "Even if a deficit occurs, the central government does not provide allocation taxes," adding, "It means we could not fill the gap even if the dam holding up our finances collapses."

Governor Chu further stressed the urgent need to reform the revenue structure along with fiscal reform, highlighting the necessity of restructuring fiscal policy to match the expanded roles and responsibilities of local governments.

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