Kim Yong-pan, district mayor of Dalseo-gu in Daegu, holds a press conference at the district office Thursday morning to declare a fiscal emergency and announce a sweeping overhaul of budget operations. [Dalseo-gu Office]
Kim Yong-pan, district mayor of Dalseo-gu in Daegu, holds a press conference at the district office Thursday morning to declare a fiscal emergency and announce a sweeping overhaul of budget operations. [Dalseo-gu Office]

Dalseo-gu in Daegu has declared a "fiscal emergency and sweeping budget overhaul" in response to a rapid depletion of available resources and a structural fiscal crisis.

District Mayor Kim Yong-pan held a press conference at the district office Thursday morning, saying the district's fiscal self-reliance ratio had fallen for three consecutive years to around 17 percent, while its fiscal autonomy ratio remained at roughly 26 percent — making it difficult to meet administrative demands with its own revenue alone.

He added that despite a total budget of 1 trillion won ($707 million), the district's net surplus — its actual available funds — had plunged from the 50 billion won range to the 10 billion won range, with the integrated fiscal stabilization fund balance standing at just 300 million won. He also noted that the district had issued local bonds in the second half of last year to fund administrative and welfare infrastructure, breaking its longstanding debt-free policy.

Kim cited the expansion of public facility construction, cost-matching burdens from competitive grant projects, and rising mandatory social welfare contributions as the main drivers of the fiscal deterioration. He noted particularly that this year's social welfare budget stands at 867.8 billion won, accounting for 73.29 percent of the total budget — the third-highest share among all basic local governments nationwide.

Kim said the district would undertake a large-scale restructuring of projects to address the fiscal crisis this year.

"We will first halt projects totaling 59.4 billion won that are expected to carry heavy operating costs going forward — including the Dalseong Wetland Eco Observatory (33 billion won), the Dalseo Starlight Astronomy Science Center (19.9 billion won), and the Dalseo Ecology Center (6.5 billion won)," he said, adding that ongoing projects would also be reviewed for progress and public impact to prevent budget waste.

The district will also restructure routine festivals and low-efficiency projects. Events deemed consumptive or of the talent-show variety will be consolidated or abolished, and the district is considering introducing a sunset clause for 56 underperforming projects.

Competitive grant projects will undergo feasibility and fiscal impact assessments to minimize the district's cost-matching burden, with only those verified to have a meaningful effect on the local economy selected for pursuit. Showy landscape projects — such as a pedestrian bridge, a wall fountain and a rock garden — will be set aside in favor of initiatives with direct, tangible benefits for residents.

However, the district has established a firm principle of giving top priority to essential welfare services for the elderly, people with disabilities and vulnerable groups, as well as to budgets protecting residents' lives and safety.

"I will never mortgage tomorrow's Dalseo for today's popularity," Kim said. "Public servants will lead by example and tighten their belts first, while we protect essential welfare for vulnerable residents and public safety budgets to the very end."


kbj7653@heraldcorp.com