Key welfare programs in Gyeonggi Province face suspension from Thursday

Major public welfare programs in Gyeonggi Province are expected to face disruption starting Thursday, after the province's second supplementary budget for this year — drawn up with about 500 billion won ($368 million) in cuts due to a fiscal crunch — stalled in the provincial assembly amid an ongoing dispute.

According to Gyeonggi Province and the provincial assembly, the supplementary budget bill had not been passed as of Wednesday. The province and the assembly failed to reach agreement over funding for programs that had been reduced or left out of the budget. The bill had originally been scheduled for deliberation and a vote during the 393rd extraordinary session, held Sept. 1 through Sept. 18.

Several welfare programs now face suspension as early as Thursday. They include support for long-term care benefits for the elderly (123.4 billion won), fertility treatment costs for couples with infertility (22.3 billion won), income support for farmers and fishers (21.5 billion won), basic income for youth (16.3 billion won), and support for residential facilities for people with disabilities (1.8 billion won). These programs had their budgets allocated only through September, as the province prioritized repaying local bonds and settling internal transactions. Funding for the remaining three months was included in the second supplementary budget.

Programs not included in the supplementary budget but agreed to be revived through negotiations between the province and the assembly are also at risk. They include postpartum care cost support, a fruit supply program for children's health, mobility support for transportation-disadvantaged residents, and improved working conditions for corporate taxi drivers. The postpartum care support program had previously sparked a petition calling for the resignation of Gyeonggi Province Governor Choo Mi-ae. As a result, the province and the assembly agreed not to suspend the program, but the delayed passage of the supplementary budget has made it difficult to disburse provincial funds.

For welfare programs at risk of disruption that are jointly funded by municipalities, Gyeonggi Province plans to have those municipalities allocate their share of the budget first, with the province reimbursing them later. The province is also considering using pre-establishment budgets — funds earmarked from central government or provincial sources that can be spent before receiving assembly approval — or retroactively applying benefits to eligible recipients once the supplementary budget passes.

With the budget process spilling into October, the timeline for key programs has come under further strain, as the window for executing projects that must be completed within the year continues to shrink.

The budget subcommittee of the Gyeonggi Provincial Assembly's budget and accounts special committee plans to finalize a proposed adjustment Thursday and deliver it to the provincial administration. Whether the province and the assembly will reach an agreement remains uncertain.