Recently, the consolidated financial balance of local governments nationwide has been deteriorating, and a deficit of 9.2 trillion won is expected in 2024. This is due to a decrease in tax revenue and an increase in welfare and various project expenditures. Gyeonggi Province declared a 'financial emergency,' and some local governments such as Daejeon and Chungbuk are also taking steps to adjust their expenditure structure. However, a Ministry of the Interior official explained that the level of local debt has not yet reached a dangerous level. Expectations are growing for a resolution to the financial crisis next year with an increase in intergovernmental transfers due to economic recovery and increased tax revenue.
