Gyeonggi-do Provincial Government Receives KRW 490 Billion in Grant Tax Due to Loss of National Tax Revenue

Local governments in Gyeonggi Province will not be able to receive ordinary grant taxes of more than 490 billion won due to a deficit in national tax revenue of 56 trillion won last year.

According to the data submitted by Gyeonggi provincial government to the office of Chung Chun-saeng of the Cho Kuk Innovation Party of the National Assembly's Public Administration and Security Committee, the national tax revenue deficit in the previous year cut 491.3 billion won in ordinary grant taxes for 29 cities and counties, excluding Seongnam City and Hwaseong City, which are Buddhist groups in the province.

"Because of the central government's lack of tax revenue, the government drastically cut the local grant tax in Gyeonggi-do Province, which is like a death sentence for basic local governments in the province with poor finances," lawmaker Chung said. "The local grant tax is on the verge of being drastically cut this year as the tax deficit is worth 30 trillion won."

Among local governments in the province, 4 are in the 10% range and 9 are in the 20% range, and the average financial independence is 32.72%.