Gyeongsangbuk-do sets next year’s budget at 14.8535 trillion won, focusing investment on key areas

【Financial News Andong = Kim Jang-wook】Gyeongsangbuk-do has set its initial 2027 budget proposal at 14.8535 trillion won, focusing investment on key areas and pursuing four major transformations in industry, livelihoods, spatial development and community.
Gyeongsangbuk-do formulated a 2027 revenue and expenditure budget proposal totaling 14.8535 trillion won on the 11th and submitted it to the Gyeongsangbuk-do Provincial Council.
The 2027 budget proposal is up 817.2 billion won (5.8%) from the previous year. The general account increased by 641 billion won (5.2%), while the special account rose by 176.2 billion won (10.5%).
With the recovery in the real estate market delayed, the province’s own-source revenues, including acquisition tax, are expected to remain around the previous year’s level. However, the overall budget has grown due to increased national subsidies, in line with the government’s expansionary fiscal stance.
Governor Lee Cheol-woo emphasized, “Although local government finances are becoming increasingly strained, we cannot stop investing to protect residents’ lives and prepare for Gyeongsangbuk-do’s future,” adding, “I agree with the policy direction of the basic income initiative being pursued by the government, but this is an important time to focus investment on areas where future generations can continue to benefit, rather than spending limited resources on one-time consumption.”
He also said, “This budget proposal boldly cuts habitual spending and concentrates resources on reviving the people’s livelihoods and creating jobs, as well as securing future growth engines such as artificial intelligence (AI) and advanced industries.” He added, “Through four major transformations in industry, livelihoods, spatial development and community, we will bring about changes that provincial residents can feel and lead Gyeongsangbuk-do’s new leap forward.”
In preparing this budget proposal, the province focused on allocating resources efficiently, including restructuring existing programs based on their performance and effectiveness, to overcome structural fiscal difficulties caused by the continued rise in statutory and mandatory expenditures, such as national subsidy programs.
Ji Jin-tae, director of the Budget Office, explained, “We streamlined low-performing and inefficient programs, curbed nonessential spending such as one-off events, and restrained excessive investment in facilities.” He added, “We concentrated seed funding in areas related to the people’s livelihoods and future growth, focusing on improving the underlying structure of fiscal management.”
With the goal of “a major transformation of Gyeongsangbuk-do that brings vitality to people’s livelihoods and momentum to future growth,” the 2027 budget proposal prioritizes investment in four areas to revive the local economy and establish a foundation for sustainable regional growth: industrial transformation, transformation of livelihoods, spatial transformation and community transformation.
The 2027 budget proposal submitted by the province is expected to be finalized on December 9, following deliberations by the Gyeongsangbuk-do Provincial Council’s standing committees and the Special Committee on Budget and Accounts.

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