Seoul's budget to decrease for 1st time in 13 years in 2024

Seoul City Hall [YONHAP]

The Seoul city government disclosed its annual budget of 45.72 trillion won ($33.75 billion) for next year Wednesday, which marks a reduction of 3.1 percent, or 1.47 trillion won, from this year's budget of 47.19 trillion won.

It is the first time since 2011, soon after the global financial crisis, that Seoul's budget has decreased compared with the previous year.

The 2024 budget plan submitted to the Seoul Metropolitan Council for approval is focused on alleviating income disparity through increased support for the underprivileged, enhancing public safety and upgrading the city's tourism, the city said.

Specifically, it will spend 13.5 trillion won, up 2.3 percent on-year, on boosting the city's welfare system.

The social welfare budget will also increase by 2.5 percent to 402.5 billion won.

Slightly over 1 trillion won will be earmarked for the city's urban planning with emphasis on tourism infrastructure and supporting creative industries, as well as urban spaces.

"The largest budget will be allocated to projects that will reinforce social mobility and improve social safety and integration," Seoul Mayor Oh Se-hoon said.

City government officials said the main reason for the budget decrease is a fall in tax revenue, noting tax revenue is estimated to decrease by 646.5 billion won to 24.2 trillion won due to slowing corporate performance and falling housing prices.

Yonhap