On the 1st, Chairman Choi Ho-jung of the Seoul City Council noted regarding the livelihood recovery consumption coupon promoted by the Lee Jae-myung government that "Seoul citizens will bear an additional burden exceeding 700 billion won, which will inevitably reduce the original project," and stated, "The central government must bear 100% of the cost."
Chairman Choi expressed this in a statement on the same day, saying that "the livelihood recovery consumption coupon is carried out as a project promised by the current government in the presidential election."
He said, "Burdening local governments with 2.9 trillion won of the cost of issuing the livelihood recovery consumption coupon will severely impact already struggling local government finance," and added, "It makes it difficult to secure funds for local residents' safety, environmental improvements, education, and ultimately poses a significant risk of damage to citizens."
The livelihood recovery consumption coupon is designed to provide 150,000 won to 500,000 won to all citizens to stimulate domestic consumption. The estimated budget for this is 13.2 trillion won, which is currently under review by the National Assembly.
Chairman Choi noted that "the budget for the livelihood recovery consumption coupon is designed with 70% of national funding and 30% of city funding for Seoul among local governments, while other metropolitan governments are set at 80% national funding," and added, "The problem is that tax revenues have been poor, with fiscal conditions exacerbated by recent losses of 87 trillion won over the past two years, making it very difficult for local governments due to reduced tax revenues and cuts in transfer payments."
He also stated, "In the case of Seoul, looking at the first supplementary budget that passed the council on the 27th, the actual project budget, excluding transfers to the Education Office and autonomous districts, was only about 400 billion won."
Chairman Choi emphasized that if the government plan for the livelihood recovery consumption coupon passes through the National Assembly, then projects essential to the city, such as urban safety to prevent land subsidence, traffic facility improvements, park maintenance, senior welfare, and support and operation of cultural facilities will inevitably be reduced, stating, "The damage will fall upon all citizens."
He stated, "The National Assembly should approve the livelihood recovery consumption coupon to provide targeted support for those in need only, significantly lowering the burden on local finances, or amend the bill to ensure 100% national funding."