Daegu Mayor Choo Kyung-ho: “The Future Response Fund Must Not Take Away the Future of Local Governments”

【Financial News Daegu = Reporter Kim Jang-wook】“The Future Response Fund must not take away the future of local governments.”
Daegu Mayor Choo Kyung-ho expressed his opposition to the creation of the Future Response Fund in a statement.
On the 3rd, Mayor Choo made his position clear on the government’s “Plan to Establish and Operate the Future Response Fund,” saying, “A fund for the future must not take away the future of local governments.”
In his statement, Mayor Choo explained, “According to the government’s plan to raise funds for the Future Response Fund, Local Grant Tax allocations nationwide are estimated to decrease by approximately 30.5 trillion won from current levels, while Daegu Metropolitan City is expected to see a reduction of approximately 700 billion won based on ordinary Local Grant Tax allocations.”
He added, “The decrease in Local Grant Tax allocations is highly likely to lead to cuts in key projects in regions outside the capital area, a decline in the quality of essential administrative services, and additional issuance of local government bonds.”
Emphasizing that “using even the resources that should be distributed as Local Grant Tax for a central government fund amounts to distrust of local governments,” Mayor Choo stated, “Local governments understand local problems best and are best equipped to address them.”
Earlier, on the 1st, the government announced that it would create a fund worth approximately 162 trillion won, financed by additional tax revenue and other sources, and spend it across four major areas: youth, growth engines, local governments, and education and talent.

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