By Kang Hyun-kyung
Seoul Mayor Park Won-soon said Thursday that the metropolitan government will issue 200-billion-won in municipal bonds to fund free childcare programs.
The move came months after a call for more subsidies from the central government was snubbed.
"We have no time to delay this further as waiting for assistance from the central government would come at the expense of children's welfare," Park said at a news conference.
"The childcare budget shortage of 370 billion won is very demanding indeed because our tax revenue will fall by as much as 400 billion won this year due to the sluggish domestic economy."
Park said the city government was determined to opt for a debt increase for the sake of free childcare because he didn't want citizens to lose hope.
Seoul Metropolitan Government plans to implement free childcare as scheduled until the year's end with the fund created through municipal bonds, additional budget and a combined 142 billion won of state subsidies.
However, its plan to issue bonds will weaken its financial health further. It is already suffering a budget deficit of 3 trillion won.
Mayor Park said that the city government can barely manage to handle the budget providing free childcare this year but the problem will be severe next year because its financial health will worsen further.
"Now is the time for the central government, as well as the National Assembly, to respond to the call to resolve the problem as we did our best," he said.
He urged lawmakers to pass the revision bill calling for lowering the city government's financial burden on free childcare immediately. Under the current law, Seoul City is responsible for financing 80 percent of the childcare budget. The revision bill cuts the city government's share to 60 percent.
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Seoul Mayor |
The move came months after a call for more subsidies from the central government was snubbed.
"We have no time to delay this further as waiting for assistance from the central government would come at the expense of children's welfare," Park said at a news conference.
"The childcare budget shortage of 370 billion won is very demanding indeed because our tax revenue will fall by as much as 400 billion won this year due to the sluggish domestic economy."
Park said the city government was determined to opt for a debt increase for the sake of free childcare because he didn't want citizens to lose hope.
Seoul Metropolitan Government plans to implement free childcare as scheduled until the year's end with the fund created through municipal bonds, additional budget and a combined 142 billion won of state subsidies.
However, its plan to issue bonds will weaken its financial health further. It is already suffering a budget deficit of 3 trillion won.
Mayor Park said that the city government can barely manage to handle the budget providing free childcare this year but the problem will be severe next year because its financial health will worsen further.
"Now is the time for the central government, as well as the National Assembly, to respond to the call to resolve the problem as we did our best," he said.
He urged lawmakers to pass the revision bill calling for lowering the city government's financial burden on free childcare immediately. Under the current law, Seoul City is responsible for financing 80 percent of the childcare budget. The revision bill cuts the city government's share to 60 percent.
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