Chungbuk Province Faces Fiscal Crisis, Plans Spending Cuts and Asset Sales

Chungbuk Province has declared a 'fiscal emergency,' warning that its financial situation is worse than ever before. The province's debt ratio has climbed to 18.1%, exceeding that of Gyeonggi Province, which had previously declared a similar emergency.

Officials revealed that the provincial debt has ballooned to 1.3866 trillion won, a significant increase from previous administrations. This figure does not include hidden debts like public servant salaries, further exacerbating the financial strain. The province attributes this situation to substantial borrowing during the previous administration.

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We have taken the first step toward fiscal normalization through budget restructuring and improving our financial health.

To address the crisis, Chungbuk Province has unveiled a plan for fiscal normalization. This includes restructuring expenditures, cutting budgets for items such as official entertainment by 12.1%, and reducing high-interest external debt. The province also intends to sell underutilized public assets to generate revenue.

A supplementary budget of 8.5015 trillion won has been proposed. This increase of 422.5 billion won from the previous budget aims to cover essential expenses not initially allocated, fund public welfare projects, and match national funding for various programs. Key allocations include funds for public servant salaries, land acquisition for a bio-square, rural basic income, and replacement of a fire helicopter.

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We will operate the budget rationally and transparently to ensure it is used correctly.