Gyeonggi Province grapples with budget deficit as spending cuts meet public pushback

Gyeonghi Province's latest budget totals 42.21 trillion won, yet its welfare spending has nearly tripled since 2018, while matching contributions for national programs have almost doubled. Since 2022 the province has run a consolidated fiscal deficit, compounded by a sharp drop in acquisition tax revenue as property sales slow. Analysts say the structural flaw is one outlet revenue-sharing arrangement with the central government, calling for reforms that give localities more fiscal leeway.

They also caution that new or expanded social programs, many introduced during the pandemic, need rigorous long-term cost assessments. A proposed cut to child-care funding was reversed after mass protests, highlighting the political difficulty of rolling back benefits. Provincial officials acknowledge the challenge, noting that failing to act could lead to financial collapse, while opposition from legislators and interest groups may shift cuts to other areas.