FY2013 Settlement
White Paper on
Local Public Finance, 2015
– Illustrated –
Contents1 "Net totals of the revenues and expenditures" are the ordinary net account totals of 3,090 organizations (47
prefectures, 1,719 municipalities, 23 special wards, 1,236 special districts and 112 inter-municipal/prefectural
joint authorities).2 Figures for each item that are less than the given unit are rounded off. Therefore, they do not necessarily add up
exactly to the total.3 In FY2011, the revenues and expenditures of ordinary accounts were divided into the regular portion (Overall
settlement figures less the Great East Japan Earthquake portion) and the Great East Japan Earthquake portion
(Covering the revenues and expenditures related to recovery and reconstruction work and nationwide disaster
prevention work).
The Role of Local Public Finance ............................................................ 01
FY2013 Settlement Overview .................................................................. 04
Revenues ................................................................................................ 06
1. Revenue Breakdown .............................................................................. 06
2. Revenues in Regular Portion and Great East Japan Earthquake Portion ........................ 07
3. Revenue Trends .................................................................................... 08
4. Local Taxes ....................................................................................... 09
5. Local Allocation Tax .............................................................................. 12
Expenditures
............................................................................................. 13
1. Expenses Classified by Purpose .................................................................. 13
2. Expenditures in Regular Portion and Great East Japan Earthquake Portion (Expenses Classified by Purpose) ... 14
3. Expenses Classified by Type ..................................................................... 17
4. Expenditures in Regular Portion and Great East Japan Earthquake Portion (Expenses Classified by Type) ...... 18
Flexibility of the Financial Structure ......................................................... 22
1. Ordinary Balance Ratio (Trends and Breakdown) ............................................................ 22
2. Real Debt Service Ratio and Debt Service Payment Ratio (Trends) ................................. 23
Outstanding Local Government Borrowing ............................................. 24
1. Trends in Outstanding Local Government Borrowing ............................................. 24
2. Trends in Outstanding Borrowing Borne by the Ordinary Accounts .............................. 24
Local Public Enterprises ........................................................................... 25
1. Ratio of Local Public Enterprises .................................................................. 25
2. Number of Businesses Operated by Local Public Enterprises
.................................... 26
3. Scale of Financial Settlement ..................................................................... 26
4. Financial Status .................................................................................... 27
Impact of Great East Japan Earthquake ................................................... 28
1. Settlement of Disaster-Struck Organizations (Revenues, Expenditures (Classified by Purpose, Type)) .................. 28
2. Financial Status of Businesses of Local Public Enterprises of Disaster-Struck Organizations ... 30
Promotion of the Soundness of Local Public Finance .............................. 31
1. Overview of the Act on Assurance of Sound Financial Status of Local Governments ......... 31
2. Status of the Ratios for Determining Financial Soundness
....................................... 32
The Role of Local Public Finance
Prefectures and municipalities (cities, towns, and villages) are the central actors in various areas of public services, including school
education, public welfare and health, police and fire services, and public works such as roads and sewage systems, thereby fulfilling a
major role in the lives of the citizens of the nation. This brochure describes the status of local public finance (which comprises collectively
the finances of individual local governments), the state of settlements for FY2013, and the initiatives of local governments towards sound
public finances (mainly the status of the ratios for determining their financial soundness), with particular attention given to ordinary
accounts (Public enterprises, such as water supply, transportation, and hospitals are described in the section on Local Public Enterprises).
Classification of the Accounts of Local Governments Applied in the Settlement Account Statistics
The accounts of local governments are divided into the general accounts and the special accounts, which vary in scope between local
governments. Therefore, to secure standardization in the tabulation of local finance, the accounts are classified as ordinary accounts,
which cover the general administrative sector, and other accounts (public business accounts). This makes it possible to clarify the financial
condition of local governments as a whole and to make a statistical comparison between local governments.
General administrative sector accounts
Public enterprise accounts
National health
insurance accounts
Latter-stage elderly
medical care
accounts
Nursing care
insurance accountsEtc.●くろまる Water supply ●くろまる Transportation ●くろまる Electrical power ●くろまる Gas
●くろまる Hospitals ●くろまる Sewer systems ●くろまる Residential land development Etc.
Ordinary accounts
Other accounts
(Public business
accounts)
Local Government Accounts01Local Public Finance, 2015 –Illustrated–
How large is local public finance compared with central government finance?
Role of Local Finance
The ratio of gross domestic product (expenditure) consisting of local public finance is 11.7%, about 2.4 times that of the central
government.
△しろさんかく50050100150200250300350400(trillion yen)
Private sector Net export of goods and services
Government sector
Gross Domestic Product
(expenditure, nominal)
483,円 110.3 billion (100%)
122,355円.4 billion
(25.3%)
56,473円.9 billion
(11.7%)
56,473円.9 billion
(11.7%)
42,561円.7 billion
(8.8%)
42,561円.7 billion
(8.8%)
307,769円.3 billion
(63.7%)
307,769円.3 billion
(63.7%)
68,892円.6 billion
(14.3%)
68,892円.6 billion
(14.3%)
23,319円.7 billion
(4.8%)
23,319円.7 billion
(4.8%)
376,661円.9billion
(78.0%)
376,661円.9billion
(78.0%)
▲さんかく15,907円.0 billion
(▲さんかく3.3%)
Central government Local governments
Social security funds
Corporate sector
Household sector
Net export
Gross Domestic Product (Expenditure) and Local Public Finance (FY2013)
02 White Paper on Local Public Finance, 2015
In which areas is the share of local expenditures high?
The share of local governments’ expenditures is higher in areas that are deeply related to daily life, such as public health and sanitation,
school education, police and fire services, and social education.100%100%
Public health centers, garbage disposal, etc.
Public health centers, garbage disposal, etc.87%87%
Elementary and junior high schools, kindergartens, etc.
Elementary and junior high schools, kindergartens, etc.74%74%
Community centers, libraries, museums, etc.
Community centers, libraries, museums, etc.70%70%
Rivers and coasts
Rivers and coasts81%81%
Family register, basic resident register, etc.
Family register, basic resident register, etc.13%13%78%78% 22%22%26%26%38%
38% 62%62%45%
45% 55%55%82%
82% 18%18%41%
41% 59%59%4%
4% 96%96%100%100%100%100%19%19%100%100%Urban planning, roads and bridges, public housing, etc.
Urban planning, roads and bridges, public housing, etc. 74%
74% 26%26%Child welfare, elderly care and welfare, public assistance, etc.
Child welfare, elderly care and welfare, public assistance, etc. 72%
72% 28%28%30%30%67%
67% 33%33%Local 58.3%
Local 58.3% Central 41.7%
Central 41.7%
Sanitation expenses 3.6%
School education expenses 8.8%
Land development expenses 8.7%
Commercial and
industrial expenses 5.3%
Disaster recovery expenses,
etc. 0.6%
Debt services 20.9%
Pension expenses
(of public welfare expenses) 6.3%
Defense expenses 2.9%
Other 2.7%
Judicial, police, and
re service expenses 3.9%
Social education
expenses, etc.2.8%Public welfare expenses
(excluding pension expenses) 20.2%
Land conservation expenses 1.6%
Agriculture, forestry and
shery industry expenses 1.8%
Housing expenses, etc. 1.7%
Onkyu pension expenses 0.3%
General administration
expenses, etc. 7.9%
Share of Expenditures by Purpose of Central and Local Governments (final expenditure basis)03Local Public Finance, 2015 –Illustrated–
FY2013 Settlement Overview
1 Revenues
101,099円.8 billion (up 1,257円.0 billion, 1.3% year on year)
Regular portion: 96,228円.9 billion (up 2,394円.9 billion, 2.6% year on year)
Great East Japan Earthquake portion: 4,870円.9 billion (down 1,137円.9 billion, 18.9% year on year)
The increase of revenues in the regular portion resulted from an increase of national treasury disbursements; local taxes and local
corporation special transfer tax, which are both part of general revenue resources, etc.
The decrease of revenues in the Great East Japan Earthquake portion resulted from a decrease of national treasury disbursements (grants
to measures for earthquake disaster reconstruction), general revenue resources (earthquake disaster reconstruction allocation tax), etc.
2 Expenditures
97,412円.0 billion (up 993円.5 billion, 1.0% year on year)
Regular portion: 93,166円.5 billion (up 2,067円.8 billion, 2.3% year on year)
Great East Japan Earthquake portion: 4,245円.5 billion (down 1,074円.3 billion, 20.2% year on year)
The increase of expenditures in the regular portion resulted from an increase of ordinary construction work expenses, subsidizing
expenses, etc.
The decrease of expenditures in the Great East Japan Earthquake portion resulted from a decrease of reserves (reserves for the funds
related to Great East Japan Earthquake reconstruction), etc.
3 Revenue and Expenditure Settlement
The real balance showed a surplus of 1,957円.8 billion.
Category
Settlement Period No. of local governments with a deficit
FY2013 FY2012 FY2013 FY2012
Real balance 1,957円.8 billion 1,767円.5 billion 4 2
Single year balance 190円.9 billion ▲さんかく28円.1 billion 1,379 1,600
Real single year
balance
763円.7 billion 437円.8 billion 1,138 1,209
Notes : 
Real balance refers to the amount calculated by subtracting the revenue resources that should be carried over to the next fiscal year from the income expenditure balance.
Single year balance refers to the amount calculated by subtracting the real balance of the previous fiscal year from the real balance of the relevant fiscal year.
Real single year balance refers to the amount calculated by adding reserves and advanced redemption of local loans for the public finance adjustment fund to the single year
balance and subtracting public finance adjustment fund reversals.
04 White Paper on Local Public Finance, 2015
4 Trend in Scale of Account Settlement
Both revenues and expenditures of the regular portion increased for the first time in four years.
(trillion yen)
FY2003 FY2012 FY2013
FY2009 FY2010 FY201199.896.498.496.197.593.8
100.194.891.197.05.36.095.05.092.54.5101円.1 trillion
97円.4 trillion96.2Earthquake
portion4.9Earthquake
portion4.993.2
Earthquake
portion4.2Earthquake
portion4.2850909510010594.992.6Expenditures (Earthquake portion)
Expenditures (Regular portion)
Revenues (Earthquake portion)
Revenues (Regular portion)
5 Major Financial Indices
Ordinary balance ratio declined 1.1 percentage points year on year, to 91.6%.
Real debt service ratio declined 0.4 percentage points, to 10.9%.
Category FY2013 FY2012 Change
Ordinary balance ratio 91.6% 92.7% ▲さんかく1.1
Real debt service ratio 10.9% 11.3% ▲さんかく0.4
6 Outstanding Borrowing Borne by Ordinary Accounts
Outstanding borrowing, which includes outstanding local government borrowing as well as borrowing from the special accounts for local
allocation tax and outstanding public enterprise bonds (borne by ordinary accounts), amounted to 201,359円.9 billion (up 312円.2 billion, 0.2%,
year on year).
Category FY2013 FY2012 Change amount Change rate
Outstanding local government bonds
(excluding bonds for the extraordinary
financial measures)
100,952円.3 billion 104,100円.8 billion ▲さんかく3,148円.5 billion ▲さんかく3.0%
Outstanding local government bonds 145,917円.1 billion 144,705円.2 billion 1,211円.9 billion 0.8%
Outstanding borrowing from the special
accounts for local allocation tax
33,317円.3 billion 33,417円.3 billion ▲さんかく100円.0 billion ▲さんかく0.3%
Outstanding public enterprise bonds
(borne by ordinary accounts)
22,125円.5 billion 22,925円.2 billion ▲さんかく799円.7 billion ▲さんかく3.5%
Total 201,359円.9 billion 201,047円.7 billion 312円.2 billion 0.2%
Note : Outstanding public enterprise bonds (borne by ordinary accounts) are estimates based on settlement account statistics.05Local Public Finance, 2015 –Illustrated–
What are the revenue sources for local governments’ activities?
Revenues
1 Revenue Breakdown
The revenue of local governments consists mainly of local taxes, local allocation tax, national treasury disbursements, and local bonds, in
order of share size. Among them, revenue resources which can be spent for any purpose, such as local taxes and local allocation tax, are
called general revenue resources. It is important for local governments to ensure sufficient general revenue resources in order to handle
various administrative needs properly. In FY2013, general revenue resources accounted for 55.0%.
Local transfer tax : Collected as a national tax and transferred to local governments. Includes local gasoline transfer tax, etc.
Special local grants : Special local grants in FY2013 include special grants for covering decreases in local tax revenues issued to cover decreases in revenues of local governments
in association with the implementation of special tax deductions for housing loans in the individual inhabitant tax.
Local allocation tax : An intrinsic revenue source of local governments in order to adjust imbalances in tax revenue among local governments and to guarantee revenue sources so
that all the local governments across the country can provide a consistent level of public services. (See page.12, "5. Local Allocation Tax.")
National treasury
disbursements
: A collective term for the national obligatory share, commissioning expenses, incentives for specific policies, or financial assistance, disbursed from the central
government to local governments.
Local bonds : The debts of local governments to be repaid over a period of time in excess of one fiscal year for which redemption continues for more than one fiscal year.
Bond for temporary substitution
for local allocation tax
: Local bonds issued as an exception to Article 5 of the Local Finance Law to address shortages of general revenue resources of local governments. Proceeds
from these bonds can be used for expenses other than investment expenses.
Net total
101,099円.8 billion
Prefectures
total
51,572円.6 billion
Municipalities
total
57,028円.5 billion
◆だいやまーくNational treasury disbursements
16,447円.0 billion (16.3%)
◆だいやまーくLocal bonds
12,284円.9 billion (12.2%)
◆だいやまーくOther revenue resources
16,713円.8 billion (16.5%)
◆だいやまーくNational treasury
disbursements
7,342円.5 billion
(14.2%)
◆だいやまーくLocal bonds
6,781円.0 billion
(13.1%)
◆だいやまーくOther revenue resources
9,602円.5 billion
(18.7%)
◆だいやまーくNational treasury
disbursements
9,104円.6 billion
(16.0%)
◆だいやまーくLocal bonds
5,526円.0 billion
(9.7%)
◆だいやまーくOther revenue resources
12,777円.6 billion
(22.4%)
●くろまるLocal taxes
18,565円.1 billion
(32.6%)
●くろまるSpecial local grants
75円.3 billion
(0.1%)
●くろまるLocal allocation tax
8,746円.6 billion
(15.3%)
●くろまるBonds for the
extraordinary
nancial measures
3,823円.3 billion
(7.4%)
●くろまるBonds for the extraordinary nancial
measures
6,037円.9 billion (6.0%)
●くろまるLocal transfer tax
2,558円.8 billion (2.5%)
●くろまるSpecial local grants
125円.5 billion (0.1%)
●くろまるLocal allocation tax
17,595円.5 billion (17.4%)
●くろまるOther general revenue resources
1円.5 billion
(0.0%)
●くろまるOther general revenue resources
1,811円.3 billion
(3.2%)
●くろまるBonds for the
extraordinary nancial
measures
2,214円.6 billion
(3.9%)
General revenue resources
55,654円.1 billion (55.0%)
●くろまるLocal taxes
35,374円.3 billion (35.0%)
General revenue resources
27,846円.6 billion
(54.0%)
●くろまるLocal taxes
16,809円.2 billion
(32.6%)
●くろまるLocal transfer tax
2,136円.8 billion
(4.1%)
●くろまるSpecial local grants
50円.2 billion
(0.1%)
●くろまるLocal allocation tax
8,848円.9 billion
(17.2%)
General revenue resources
29,620円.3 billion
(51.9%)
●くろまるLocal transfer tax
422円.0 billion
(0.7%)
Composition of Revenues (FY2013 settlement)
06 White Paper on Local Public Finance, 2015
2 Revenues in Regular Portion and Great East Japan Earthquake Portion
Regular portion
96,228円.9 billion
◆だいやまーくOther revenue resources
14,809円.0 billion
(15.4%)
◆だいやまーくLocal bonds
11,875円.0 billion
(12.3%)
◆だいやまーくGeneral revenue resources
55,031円.0 billion (57.2%)
◆だいやまーくOther revenue
resources
1,904円.7 billion (39.1%)
◆だいやまーくLocal bonds
409円.9 billion
(8.4%)
◆だいやまーくNational treasury
disbursements
1,933円.2 billion(39.7%)
●くろまるOf this amount, ordinary construction
expenses were
201円.9 billion (4.1%)
●くろまるOf this amount, recovery and
reconstruction expenses were
403円.5 billion (8.3%)
●くろまるOf this amount, grants to measures
for earthquake disaster reconstruction were
450円.7 billion (9.3%)
◆だいやまーくGeneral revenue resources 623円.1 billion (12.8%)
●くろまるOf this amount, earthquake disaster reconstruction
allocation tax was 507円.1 billion (10.4%)
◆だいやまーくNational treasury
disbursements
14,513円.9 billion
(15.1%)
●くろまるOf this amount, ordinary
construction expenses were
1,581円.9 billion (1.6%)
●くろまるOf this amount, recovery and
reconstruction expenses were
163円.2 billion (0.2%)
Great East Japan
Earthquake portion
4,870円.9 billion
Regular portion
48,584円.9 billion
◆だいやまーくOther revenue resources
8,033円.1 billion
(16.5%)
◆だいやまーくLocal bonds
6,643円.2 billion
(13.7%)
Great East Japan
Earthquake portion
2,987円.7 billion
◆だいやまーくOther revenue resources
1,569円.3 billion (52.5%)
◆だいやまーくNational treasury
disbursements
940円.2 billion (31.5%)
●くろまるOf this amount, ordinary
construction expenses were
47円.9 billion (1.6%)
●くろまるOf this amount, recovery and
reconstruction expenses were
268円.7 billion (9.0%)
●くろまるOf this amount, grants to measures
for earthquake disaster reconstruction were
53円.8 billion (1.8%)
◆だいやまーくGeneral revenue resources
27,506円.3 billion (56.6%)
◆だいやまーくGeneral revenue resources 340円.4 billion (11.4%)
●くろまるOf this amount, earthquake disaster reconstruction
allocation tax was 270円.0 billion (9.0%)
◆だいやまーくNational treasury
disbursements
6,402円.3 billion
(13.2%)
●くろまるOf this amount, ordinary
construction expenses were
1,111円.1 billion (2.3%)
●くろまるOf this amount, recovery and
reconstruction expenses were
117円.2 billion (0.2%)
◆だいやまーくLocal bonds
137円.8 billion (4.6%)
Regular portion
54,445円.6 billion
◆だいやまーくOther revenue resources
8,602円.9 billion (15.8%)
◆だいやまーくNational treasury
disbursements
8,111円.6 billion (14.9%)
●くろまるOf this amount, ordinary
construction expenses were
470円.8 billion (0.9%)
●くろまるOf this amount, recovery and
reconstruction expenses were
46.0 billion (0.1%)
◆だいやまーくGeneral revenue resources
29,337円.5 billion (53.9%)
◆だいやまーくOther revenue resources
660円.0 billion (25.6%)
◆だいやまーくLocal bonds
275円.2 billion (10.7%)
◆だいやまーくPrefectural disbursements
372円.0 billion (14.4%)
◆だいやまーくNational treasury
disbursements
993円.0 billion (38.4%)
●くろまるOf this amount, ordinary construction
expenses were
154円.0 billion (6.0%)
●くろまるOf this amount, recovery and
reconstruction expenses were
134円.8 billion (5.2%)
●くろまるOf this amount, grants to measures
for earthquake disaster reconstruction were
396円.9 billion (15.4%)
◆だいやまーくGeneral revenue resources
282円.7 billion (10.9%)
●くろまるOf this amount,earthquake disaster reconstruction
allocation tax was 237円.1 billion (9.2%)
◆だいやまーくPrefectural disbursements
3,142円.9 billion (5.8%)
◆だいやまーくLocal bonds
5,250円.7 billion (9.6%)
Great East Japan
Earthquake portion
2,582円.9 billion
Prefectures
Net Total
Municipalities07Local Public Finance, 2015 –Illustrated–
561.2
090.4 2.2
Revenues
3 Revenue Trends
The ratio of the general revenue resources turned upward in FY2010, but has been on the decline since FY2011.
FY2003 94円.9 trillion
FY2009 98円.4 trillion
FY2010 97円.5 trillion
FY2011 100円.1 trillion
FY2013 101円.1 trillion
16円.4 trillion
(16.7%)
12円.4 trillion
(12.6%)
16円.8 trillion
(17.1%)
16円.2 trillion
(16.7%)
13円.0 trillion
(13.3%)
14円.3 trillion
(14.7%)
15円.6 trillion
(16.4%)
13円.8 trillion
(14.5%)
13円.1 trillion
(13.8%)
52円.4 trillion (55.3%)
52円.4 trillion (55.3%)
32円.7 trillion
(34.4%)
18円.1 trillion
(19.0%)
52円.8 trillion(53.6%)
52円.8 trillion(53.6%)
35円.2 trillion
(35.8%)
1円.3 trillion(1.3%) 0円.5 trillion(0.5%)
15円.8 trillion
(16.1%)
54円.0 trillion(55.3%)
54円.0 trillion(55.3%)
34円.3 trillion
(35.2%)
2円.1 trillion(2.1%) 0円.4 trillion(0.4%)
17円.2 trillion
(17.6%)
16円.8 trillion
(16.8%)
11円.8 trillion
(11.8%)
16円.0 trillion
(16.0%)
55円.5 trillion(55.4%)
55円.5 trillion(55.4%)
2円.2 trillion(2.2%)
34円.2 trillion
(34.1%)
18円.8 trillion
(18.7%)
0円.4 trillion(0.4%)
16円.6 trillion
(16.5%)
12円.3 trillion
(12.2%)
16円.5 trillion
(16.3%)
55円.7 trillion (55.0%)
55円.7 trillion (55.0%)
35円.4 trillion
(35.0%)
17円.6 trillion
(17.4%)
0円.7 trillion (0.7%) 1円.0 trillion (1.1%)
2円.6 trillion (2.5%)
[61円.7 trillion (61.0%)]
[61円.3 trillion(61.3%)]
[61円.1 trillion(62.6%)]
[57円.4 trillion(58.4%)]
[57円.7 trillion (60.8%)]
0円.1 trillion (0.1%) 6円.0 trillion (6.0%)
FY2012 99円.8 trillion
16円.9 trillion
(16.8%)
12円.3 trillion
(12.4%)
15円.5 trillion
(15.6%)
55円.1 trillion(55.2%)
55円.1 trillion(55.2%)
34円.5 trillion
(34.5%)
18円.3 trillion
(18.3%)
2円.3 trillion(2.3%)
[61円.1 trillion(61.2%)]
0円.1 trillion(0.1%) 5円.9 trillion(5.9%)
5円.3 trillion (5.5%)
4円.7 trillion(4.7%)
7円.1 trillion(7.3%)
5円.9 trillion(5.9%)
Bonds for the extraordinary nancial measures
Local bond
National treasury disbursements Other revenue resources
Special local grants
Local transfer tax
Local taxes
General revenue resources Local allocation tax
[ ] shows general revenue resources + bond for temporary substitution for local allocation tax.
0 100円 trillion
Note : "National treasury disbursements" includes "special grants to measures for traffic safety" and "grants to cities, towns and villages where national institutions are located."
Net Total
08 White Paper on Local Public Finance, 2015
Note : In the case of the special wards of Tokyo, the Tokyo Metropolitan Government collects a portion of the municipal taxes. Municipal tax revenue figures include municipal taxes
collected by the Tokyo Metropolitan Government.
4 Local Taxes
Local taxes consist of prefectural taxes and municipal taxes.
◆だいやまーくOther taxes
85円.5 billion (0.6%)
◆だいやまーくPrefectural tobacco tax
172円.5 billion (1.2%)
◆だいやまーくAutomobile acquisition tax
193円.4 billion (1.3%)
◆だいやまーくAutomobile tax
1,574円.4 billion (10.7%)
◆だいやまーくReal estate acquisition tax
357円.0 billion (2.4%)
◆だいやまーくLight oil delivery tax
943円.1 billion (6.4%)
◆だいやまーくLocal consumption tax
2,649円.6 billion (17.9%)
●くろまるCorporate
2,673円.9 billion (18.1%)
●くろまるIndividual
181円.3 billion (1.2%)
◆だいやまーくEnterprise tax
2,855円.2 billion (19.3%)
●くろまるOn interest paid
114円.9 billion (0.8%)
●くろまるIndividual
4,988円.0 billion (33.8%)
●くろまるCorporate
840円.3 billion (5.7%)
◆だいやまーくPrefectural inhabitant tax
5,943円.2 billion (40.2%)
Total
14,773円.9 billion
◆だいやまーくFixed asset tax
8,652円.6 billion (42.0%)
●くろまるIndividual
7,014円.6 billion (34.1%)
◆だいやまーくOther taxes
565円.9 billion (2.7%)
◆だいやまーくMunicipal tobacco tax
983円.2 billion (4.8%)
●くろまるCorporate
2,157円.4 billion (10.5%)
◆だいやまーくCity planning tax
1,226円.7 billion (6.0%) Total
20,600円.4 billion
◆だいやまーくMunicipal inhabitant tax
9,172円.0 billion (44.5%)
Composition of Revenue from Prefectural Taxes (FY2013 settlement)
Composition of Revenue from Municipal Taxes (FY2013 settlement)09Local Public Finance, 2015 –Illustrated–
Revenues
Prefectural tax revenues had been on a downward trend since FY2009, but turned upward in FY2012 and increased as well in FY2013.9.18.78.79.1
7.6 6.96.76.87.35.62.12.02.01.82.08.69.09.08.98.80.90.90.80.80.91.21.31.31.21.20.50.50.50.50.520.39.27.02.28.71.01.20.520.420.320.519.0(trillion yen)0246810121416182022
Fixed asset tax Other taxes
Municipal tobacco tax City planning tax
Corporate
Individual
Municipal inhabitant tax
FY2009 FY2010 FY2011 FY2012 FY2013
FY2003
20円.6 trillion
Note : Municipal tax revenue figures include municipal taxes collected by the Tokyo Metropolitan Government.4.74.54.64.92.20.80.80.80.70.80.10.10.20.20.32.42.22.32.73.62.62.62.62.42.41.61.61.61.71.70.90.90.90.81.15.62.55.42.45.52.45.82.90.20.33.83.314.113.814.014.713.70.10.20.30.10.20.30.20.20.20.20.30.10.20.30.20.35.00.80.12.72.61.60.95.92.90.10.20.20.20.40.20.30.20.40.40.40.502468101214161820
(trillion yen)
FY2009 FY2010 FY2011 FY2012 FY2013
FY2003
Local consumption tax Other taxes
Light oil delivery tax
Automobile acquisition tax
Automobile tax
Real estate acquisition tax Prefectural tobacco tax
Prefectural inhabitant tax Individual
Corporate
Enterprise tax
Corporate
On interest paid
Individual
14円.8 trillion
Municipal tax revenues had remained almost at the same level since FY2009, but increased slightly in FY2013.
Trends in Prefectural Tax Revenues
Trends in Municipal Tax Revenues
10 White Paper on Local Public Finance, 2015
In order for local governments to provide public services in response to local needs on their own responsibility and at their own discretion,
it is necessary to build a less imbalanced and stable local tax system. Comparing local tax revenue amounts, with the national average set
at 100, Tokyo, the highest, was approximately 2.6 times the amount for Okinawa Prefecture, which was the lowest.83.171.174.590.469.475.085.292.898.192.690.595.7
167.7
108.287.693.094.896.989.886.489.0103.7
115.897.193.492.9104.895.075.878.072.474.089.794.887.284.888.679.469.188.376.968.571.678.969.670.264.9
100.078.663.867.783.063.070.675.192.291.086.0
107.3
112.5
160.0
130.777.590.489.187.584.382.188.099.6
114.993.894.994.695.3
100.994.075.369.572.683.392.782.375.984.372.969.985.070.169.869.271.464.365.459.8100.065.956.362.997.154.956.788.881.591.483.763.170.2
260.284.382.683.091.692.888.572.172.896.3116.886.788.079.5121.871.541.359.259.863.779.191.183.188.3102.280.348.585.170.651.155.062.552.054.053.5
100.0
102.895.592.798.494.392.293.991.696.993.579.494.1144.091.596.895.499.296.795.899.691.7
100.5
107.097.280.5
101.4
108.390.275.584.894.690.194.896.295.788.795.589.392.497.688.789.292.299.389.787.373.4
100.076.074.775.081.171.375.681.694.6
101.298.488.390.8158.4
104.994.197.494.7111.096.091.692.4109.8
116.8
101.699.495.4
106.2
100.070.883.075.878.993.197.091.590.586.589.772.887.580.467.873.085.274.174.879.2100.0
Hokkaido
Aomori
Iwate
Miyagi
Akita
Yamagata
Fukushima
Ibaraki
Tochigi
Gunma
Saitama
Chiba
Tokyo
Kanagawa
Niigata
Toyama
Ishikawa
Fukui
Yamanashi
NaganoGifuShizuoka
AichiMieShiga
Kyoto
Osaka
HyogoNaraWakayama
Tottori
Shimane
Okayama
Hiroshima
Yamaguchi
Tokushima
Kagawa
Ehime
Kochi
FukuokaSagaNagasaki
KumamotoOitaMiyazaki
Kagoshima
Okinawa
National average
FY2013
settlement
amount300250200150100500200150100500 200150100500 200150100500 200150100500
Individual inhabitant tax Two corporate taxes Local consumption tax
(post settlement)
Local taxes total Fixed asset tax
11円.6trillion
Max/Min 2.7
5円.1trillion
Max/Min 6.3
2円.6trillion
Max/Min 2.0
34円.7trillion
Max/Min 2.6
8円.6trillion
Max/Min 2.3
Notes : 1."Max/min" indicates the value obtained by dividing the maximum value of per-capita tax revenue for each prefecture by the minimum value.
2.Local tax revenue amounts do not include local corporation special transfer tax and also exclude overassessment and discretionary tax.3.Individual inhabitant tax revenue is the total of the prefectural individual inhabitant tax (on a per-capita basis and on an income basis) and the municipal individual inhabitant tax
(on a per-capita basis and on an income basis), and excludes overassessment.4.Revenue from the two corporate taxes is the total of the corporate prefectural inhabitant tax, the corporate municipal inhabitant tax, and the corporate business tax, and
excludes overassessment.5.Fixed asset tax revenues include prefectural amounts, and exclude overassessment.
6.Calculations were made in accordance with the basic resident register population as of January 1, 2014.
Index of Per Capita Revenue in Local Tax Revenue (with national average as 100)11Local Public Finance, 2015 –Illustrated–
Revenues
5 Local Allocation Tax
From the perspective of local autonomy, it would be the ideal for each local government to ensure the revenue sources necessary for their
activities through local tax revenue collected from their residents. However, there are regional imbalances in tax sources, and many local
governments are unable to acquire the necessary tax revenue. Accordingly, the central government collects revenue resources that would
essentially be attributable to local tax revenue and reallocates them as local allocation tax to local governments that have weaker financial
capabilities.
1.Determining the total amount of local allocation tax
The total amount of the local allocation tax is determined in accordance with estimates of standard revenue and expenditures in local
public finance as a whole, based on a fixed percentage for national taxes (32% for income tax and liquor tax, 34% for corporate tax, 29.5%
for consumption tax, and 25% for tobacco tax). The total amount of the local allocation tax in FY2013 was 17,595円.5 billion, down 3.8%
year on year.
2.How regular local allocation taxes are calculated for each local government
The regular local allocation tax for each local government is calculated through the following mechanism.
Standard nancial requirements Standard nancial revenues Regular allocation tax amount
Unit cos×ばつ Measurement unit
(national census population, etc.)×ばつ Correction coef cient
(gradated correction, etc.)
Standard nancial requirements
-Standard nancial revenues
Standard local tax revenue×ばつ Calculation rate
(75%)
+Local transfer tax, etc.
Notes : 1. Standard financial requirements are figured out based on the rational and appropriate service standards for each local government. For this reason, the local share of the
services, such as compulsory education, benefits for livelihood protection, and public works which are subject to national obligatory share, is mandatorily included. Beginning in
FY2001, part of the standard financial requirements is being transferred to special local bonds (bond for temporary substitution for local allocation tax) as an exception to Article
5 of the Local Finance Law.
2. Normal local tax revenue does not include Non-Act-based Tax or "over-taxation" that sets tax rates above the standard tax rate stipulated in the Local Tax Act.
3.Function of the local allocation tax
The function of the local allocation tax is
to adjust imbalances in revenue resources
between local governments and to ensure
their financial capacity to provide standard
public services and basic infrastructure to
residents across the country.
The adjustment of revenue resources
through local allocation tax makes the
ratios of general revenue resources to the
total revenues between local governments
practically flat regardless of the size of
population.0204060 56.741.32.412.955.928.10.13.424.453.925.10.13.325.355.313.20.24.038.0(%)0.0
Small cities
Midsize cities Towns and villages
(population of 10,000 or more)
Towns and villages
(population of Less than 10,000)
General revenue
resources
Ratio of total revenue
composed of general
revenue resources
Local taxes Local transfer tax, etc. Special local grants Local allocation tax
Note : 
A "midsize city" refers to a city with a population of 100,000 or more excluding government-ordinance-designated
cities, core cities, and special cities, and a "small city" refers to a city with a population of less than 100,000.
RatioofTotalRevenueforMunicipalitiesComposedofGeneralRevenueResources
12 White Paper on Local Public Finance, 2015
What are expenses spent on?
Expenditures
1 Expenses Classified by Purpose
Classifying the expenses by purpose demonstrates that much of public money is appropriated for public welfare expenses, education expenses, and
debt service. In prefectures, education expenses, public welfare expenses, and debt service have the highest shares in that order. In municipalities,
public welfare expenses, general administration expenses, and civil engineering work expenses account for the largest amounts in that order.
Net total
97,412円.0 billion
◆だいやまーくOther expenses
7,202円.9 billion (7.4%)
◆だいやまーくAgriculture, forestry and
shery expenses
3,500円.9 billion (3.6%)
◆だいやまーくSanitation expenses
5,988円.5 billion (6.1%)
◆だいやまーくGeneral administration expenses
10,000円.6 billion (10.3%)
◆だいやまーくCivil engineering work expenses
12,125円.2 billion (12.4%)
◆だいやまーくDebt service
13,127円.1 billion (13.5%)
◆だいやまーくEducation expenses
16,087円.8 billion (16.5%)
◆だいやまーくPublic welfare expenses
23,463円.3 billion (24.1%)
Prefectures
total
50,053円.2 billion
◆だいやまーくOther expenses
7,267円.9 billion
(14.4%)
◆だいやまーくAgriculture, forestry and
shery expenses
2,614円.6 billion
(5.2%)
◆だいやまーくSanitation
expenses
1,735円.4 billion
(3.5%)
◆だいやまーくGeneral administration
expenses
3,433円.1 billion
(6.9%)
◆だいやまーくCivil engineering
work expenses
5,643円.7 billion
(11.3%)
◆だいやまーくDebt service
7,149円.8 billion
(14.3%)
◆だいやまーくEducation expenses
10,598円.3 billion
(21.2%)
◆だいやまーくPublic welfare
expenses
7,521円.8 billion
(15.0%)
Municipalities
total
54,860円.2 billion
◆だいやまーくOther expenses
2,944円.7 billion
(5.3%)
◆だいやまーくAgriculture, forestry and
shery expenses
1,303円.5 billion
(2.4%)
◆だいやまーくSanitation
expenses
4,426円.2 billion
(8.1%)
◆だいやまーくGeneral administration
expenses
7,188円.1 billion
(13.1%)
◆だいやまーくCivil engineering
work expenses
6,685円.9 billion
(12.2%)
◆だいやまーくDebt service
6,028円.5 billion
(11.0%)
◆だいやまーくEducation expenses
5,577円.0 billion
(10.2%)
◆だいやまーくPublic welfare
expenses
18,827円.6 billion
(34.3%)
◆だいやまーくCommerce and industry expenses
5,915円.7 billion (6.1%)
◆だいやまーくCommerce and
industry expenses
4,088円.6 billion
(8.2%)
◆だいやまーくCommerce and
industry expenses
1,878円.7 billion
(3.4%)
Public welfare expenses : Expenses for the construction and operation of welfare facilities for children, the elderly, the mentally and physically disabled, etc., and for the
implementation of public assistance, etc.
Education expenses : Expenses for school education, social education, etc.
Civil engineering work expenses : Expenses for the construction and maintenance of public facilities, such as roads, rivers, housing, and parks.
Debt service : Expenses for the payment of principal, interest, etc., on debts.
Composition of Expenditure Classified by Purpose (FY2013 settlement)13Local Public Finance, 2015 –Illustrated–
Expenditures
2 ExpendituresinRegularPortionandGreatEastJapanEarthquakePortion(ExpensesClassifiedbyPurpose)
Regular portion
93,166円.5 billion
◆だいやまーくPublic welfare expenses
22,447円.3 billion (24.1%)
●くろまるOf this amount, disaster relief expenses were
17円.1 billion (0.0%)
◆だいやまーくOther expenses
6,142円.6 billion (6.6%)
◆だいやまーくRecovery and
reconstruction expenses
293円.2 billion (0.3%)
◆だいやまーくAgriculture, forestry
and shery expenses
3,294円.5 billion
(3.5%)
◆だいやまーくSanitation expenses
5,893円.8 billion
(6.3%)
◆だいやまーくCommerce and
industry expenses
5,477円.0 billion (5.9%)
◆だいやまーくGeneral administration expenses
9,371円.0 billion (10.1%)
◆だいやまーくCivil engineering work expenses
11,459円.7 billion (12.3%)
◆だいやまーくEducation expenses
15,665円.2 billion
(16.8%)
◆だいやまーくDebt service
13,122円.2 billion
(14.1%)
Great East Japan
Earthquake portion
4,245円.5 billion
◆だいやまーくPublic welfare expenses
1,016円.0 billion (23.9%)
●くろまるOf this amount, disaster relief expenses were
991円.3 billion (23.3%)
◆だいやまーくSanitation expenses
94円.8 billion
(2.2%)
◆だいやまーくCommerce and
industry expenses
438円.6 billion (10.3%)
◆だいやまーくGeneral administration expenses
629円.5 billion (14.8%)
◆だいやまーくCivil engineering
work expenses
665円.5 billion
(15.7%)
◆だいやまーくEducation expenses
422円.6 billion
(10.0%)
◆だいやまーくDebt service
5円.0 billion
(0.1%)
◆だいやまーくAgriculture, forestry
and shery expenses
206円.4 billion
(4.9%)
◆だいやまーくRecovery and
reconstruction expenses
589円.2 billion
(13.9%)
◆だいやまーくOther expenses
177円.9 billion (4.2%)
Regular portion
47,454円.8 billion
Great East Japan
Earthquake portion
2,598円.4 billion
◆だいやまーくPublic welfare expenses
796円.5 billion (30.7%)
●くろまるOf this amount, disaster relief expenses were
768円.4 billion (29.6%)
◆だいやまーくPublic welfare expenses
6,725円.3 billion (14.2%)
●くろまるOf this amount, disaster relief expenses were
9円.8 billion (0.0%)
◆だいやまーくRecovery and
reconstruction expenses
172円.8 billion
(0.4%)
◆だいやまーくAgriculture, forestry
and shery expenses
2,421円.7 billion
(5.1%)
◆だいやまーくCommerce and
industry expenses
3,620円.7 billion
(7.6%)
◆だいやまーくRecovery and
reconstruction expenses
411円.3 billion
(15.8%)
◆だいやまーくAgriculture, forestry
and shery expenses
192円.9 billion
(7.4%)
◆だいやまーくSanitation expenses
85円.2 billion
(3.3%)
◆だいやまーくCommerce and industry expenses
467円.9 billion (18.0%)
◆だいやまーくGeneral administration expenses
179円.2 billion (6.9%)
◆だいやまーくCivil engineering
work expenses
5,380円.8 billion
(11.3%)
◆だいやまーくEducation expenses
10,554円.7 billion
(22.2%)
◆だいやまーくCivil engineering
work expenses
262円.9 billion
(10.1%)
◆だいやまーくDebt service
0円.4 billion
(0.0%)
◆だいやまーくEducation
expenses
43円.6 billion
(1.7%)
◆だいやまーくDebt service
7,149円.4 billion
(15.1%)
◆だいやまーくGeneral administration expenses
3,253円.9 billion (6.9%)
◆だいやまーくSanitation expenses
1,650円.2 billion
(3.5%)
◆だいやまーくOther expenses
6,525円.3 billion (13.7%)
◆だいやまーくOther expenses
158円.5 billion (6.1%)
Regular portion
52,513円.4 billion
◆だいやまーくPublic welfare expenses
18,231円.5 billion (34.7%)
●くろまるOf this amount, disaster relief expenses were
7円.2 billion (0.0%)
◆だいやまーくOther expenses
2,487円.1 billion (4.7%)
◆だいやまーくRecovery and
reconstruction expenses
155円.8 billion (0.3%)
◆だいやまーくSanitation expenses
4,395円.6 billion
(8.4%)
◆だいやまーくCommerce and
industry expenses
1,856円.3 billion
(3.5%) ◆だいやまーくGeneral administration expenses
6,698円.7 billion
(12.8%)
◆だいやまーくCivil engineering
work expenses
6,264円.1 billion
(11.9%)
◆だいやまーくDebt service
6,023円.0 billion
(11.5%)
◆だいやまーくEducation
expenses
5,186円.8 billion
(9.9%)
◆だいやまーくAgriculture,
forestry and
shery expenses
1,214円.5 billion
(2.3%)
Great East Japan
Earthquake portion
2,346円.7 billion
◆だいやまーくPublic welfare expenses
596円.0 billion (25.4%)
●くろまるOf this amount, disaster relief
expenses were 582円.6 billion (24.8%)
◆だいやまーくOther expenses
84円.9 billion (3.6%)
◆だいやまーくRecovery and
reconstruction expenses
216円.9 billion
(9.2%)
◆だいやまーくAgriculture,
forestry and
shery expenses
89円.1 billion
(3.8%)
◆だいやまーくSanitation expenses
30円.6 billion
(1.3%)
◆だいやまーくCommerce and
industry expenses
22円.4 billion
(1.0%)
◆だいやまーくGeneral administration expenses
489円.3 billion (20.9%)
◆だいやまーくCivil engineering
work expenses
421円.8 billion (18.0%)
◆だいやまーくDebt service
5円.5 billion
(0.2%)
◆だいやまーくEducation
expenses
390円.2 billion
(16.6%)
Net total
Prefectures
Municipalities
14 White Paper on Local Public Finance, 2015
23.21.03.85.35.77.423.20.73.95.65.77.3\ trillion
23円.5trillion1.04.05.65.77.219.83.35.35.75.521.33.65.15.57.117.82.94.84.85.317.02.94.84.35.116.32.94.44.14.915.12.73.83.94.615.72.84.24.04.714.52.63.83.84.40.0 0.0 0.0 0.0 0.0 0.0 0.0 0.00510152025
(trillion yen)
Disaster relief Public assistance Social welfare Elderly welfare Child welfare
FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013(%)1111611027512274941006080100120140160180
FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013
Sanitation expenses
Education expenses
Agriculture, forestry and shery expenses
Debt service
General administration expenses
Commerce and industry expenses
Public welfare expenses
Civil engineering work expenses
* Indices use FY2003 as base year of 100
While civil engineering work expenses and agriculture, forestry and fishery expenses were on a downward trend, public welfare expenses
significantly rose.
Trends in Expenditures Classified by Purpose (Net total)
Trends in Breakdown of Public Welfare Expenses by Purpose15Local Public Finance, 2015 –Illustrated–
Expenditures
Disaster relief
Public assistance
Social welfare
Elderly welfare
Child welfare
Net total
23,463円.3 billion
Municipalities
18,827円.6 billion
Prefectures
7,521円.8 billion
1,008円.3 billion (4.3%)
3,964円.0 billion (16.9%)
5,645円.3 billion (24.1%)
5,662円.2 billion (24.1%)
7,183円.5 billion (30.6%)
778円.2 billion (10.3%)
271円.2 billion (3.6%)
2,206円.9 billion (29.3%)
2,887円.2 billion (38.4%)
1,378円.4 billion (18.3%)
589円.8 billion (3.1%)
3,744円.6 billion (19.9%)
4,451円.4 billion (23.6%)
3,400円.7 billion (18.1%)
6,640円.9 billion (35.3%)
Other
Social education
Health and
physical education
Senior high school
Educational general
affairs
Junior high school
Elementary school
Net total
16,087円.8 billion
Municipalities
5,577円.0 billion
Prefectures
10,598円.3 billion
1,245円.6 billion (7.8%)
1,245円.6 billion (7.8%)
2,802円.3 billion (17.4%)
2,802円.3 billion (17.4%)
1円.290.0 billion (8.0%)
1円.290.0 billion (8.0%)
1,148円.6 billion (7.1%)
1,148円.6 billion (7.1%)
2,121円.0 billion (13.2%)
2,121円.0 billion (13.2%)
2,779円.9 billion (17.3%)
2,779円.9 billion (17.3%)
4,700円.4 billion (29.2%)
4,700円.4 billion (29.2%) 3,321円.1 billion (31.3%)
3,321円.1 billion (31.3%)
1,385円.6 billion (24.8%)
1,385円.6 billion (24.8%)
816円.2 billion (14.6%)
816円.2 billion (14.6%)
1,001円.4 billion (18.0%)
1,001円.4 billion (18.0%)
1,184円.7 billion (21.2%)
1,184円.7 billion (21.2%)
731円.3 billion (13.1%)
731円.3 billion (13.1%)
160円.6 billion (2.9%)
160円.6 billion (2.9%)
1,967円.6 billion (18.6%)
1,967円.6 billion (18.6%)
1,961円.1 billion (18.5%)
1,961円.1 billion (18.5%)
2,111円.5 billion (19.9%)
2,111円.5 billion (19.9%)
297円.2 billion (5.4%)
297円.2 billion (5.4%)
956円.1 billion (9.1%)
956円.1 billion (9.1%)
161円.8 billion (1.5%)
161円.8 billion (1.5%)
119円.1 billion (1.1%)
119円.1 billion (1.1%)
Other
Harbors
Housing
Rivers and coasts
Road and bridges
Urban planning
2,365円.0 billion (41.9%)
1,825円.9 billion (27.3%)
1,165円.8 billion (20.7%)
312円.7 billion (5.5%) 417円.8 billion (6.2%)
461円.4 billion (8.2%)
301円.1 billion (5.3%)
1,037円.7 billion (18.4%)
3,357円.9 billion (50.2%)
708円.7 billion (5.9%)
165円.4 billion (2.5%)
184円.2 billion (2.8%)
1,315円.4 billion (10.8%)
4,147円.7 billion (34.2%)
4,330円.2 billion (35.7%)
1,161円.7 billion (9.6%) 734円.7 billion (11.0%)
461円.5 billion (3.8%)
Net total
12,125円.2 billion
Municipalities
6,685円.9 billion
Prefectures
5,643円.7 billion
Breakdown of Public Welfare Expenses by Purpose
Breakdown of Educational Expenses by Purpose
Breakdown of Civil Engineering Work Expenses by Purpose
16 White Paper on Local Public Finance, 2015
3 Expenses Classified by Type
Expenses are also classified, according to their economic nature, into "mandatory expenses" (consisting of personnel expenses, social
assistance expenses, and debt service), the payment of which is mandatory and the amount of which is difficult to reduce at the discretion
of individual local governments, "investment expenses" including ordinary construction work expenses, and "other expenses," (such as
goods expenses, subsidizing expenses, reserves, transfers to other accounts).
What are expenses used for?
●くろまるNon-subsidized public works expenses
5,580円.6 billion (5.7%)
●くろまるOrdinary construction work expenses
14,191円.4 billion (14.6%)
●くろまるBreakdown of transfers
Latter-stage elderly healthcare accounts
1,351円.3 billion (1.4%)
●くろまるElderly nursing care insurance accounts
1,344円.2 billion (1.4%)
●くろまるNational health insurance accounts
1,193円.2 billion (1.2%)
●くろまるSubsidized public works expenses
7,848円.8 billion (8.1%)
Net total
97,412円.0 billion
●くろまるSocial assistance expenses
12,193円.2 billion (12.5%)
◆だいやまーくOther
6,868円.5 billion (7.1%)
Mandatory expenses
47,469円.7 billion (48.7%)
●くろまるPersonnel expenses
22,177円.9 billion (22.8%)
●くろまるDebts service
13,098円.6 billion (13.4%)
Investment expenses
15,073円.3 billion (15.5%)
◆だいやまーくGoods expenses
8,942円.3 billion (9.2%)
◆だいやまーくSubsidizing expenses
9,491円.4 billion (9.7%)
◆だいやまーくReserves
4,426円.3 billion (4.5%)
◆だいやまーくTransfers to other accounts
5,140円.5 billion (5.3%)
◆だいやまーくReserves
2,298円.9 billion
(4.6%)
◆だいやまーくSubsidizing
expenses
12,025円.5 billion
(24.0%)
Prefectures
total
50,053円.2 billion
Mandatory expense
21,496円.8 billion
(42.9%)
◆だいやまーくOther
4,471円.4 billion
(9.0%)
●くろまるPersonnel expenses
13,355円.5 billion
(26.7%)
●くろまるSocial assistance
expenses
1,013円.9 billion
(2.0%)
●くろまるDebt service
7,127円.4 billion
(14.2%)
Investment expenses
7,783円.0 billion (15.5%)
●くろまるOrdinary construction work expenses
7,199円.2 billion (14.4%)
●くろまるNon-subsidized public works expenses
2,211円.2 billion (4.4%)
●くろまるSubsidized public works expenses
4,302円.0 billion (8.6%)
◆だいやまーくGoods expenses
1,788円.7 billion
(3.6%)
◆だいやまーくTransfers to other accounts
188円.9 billion
(0.4%)
◆だいやまーくReserves
2,127円.4 billion
(3.9%)
◆だいやまーくTransfers to other accounts
4,951円.6 billion
(9.0%)
◆だいやまーくSubsidizing
expenses
4,116円.1 billion
(7.5%)
Municipalities
total
54,860円.2 billion
●くろまるDebt service
6,022円.3 billion
(11.0%)
●くろまるSocial assistance
expenses
11,179円.3 billion
(20.4%)
◆だいやまーくOther
2,425円.0 billion
(4.5%)
●くろまるPersonnel expenses
8,822円.4 billion
(16.1%)
Mandatory expenses
26,024円.0 billion
(47.4%)
Investment expenses
8,062円.5 billion (14.7%)
●くろまるOrdinary construction work expenses
7,690円.1 billion (14.0%)
●くろまるNon-subsidized public works expenses
3,627円.5 billion (6.6%)
●くろまるSubsidized public works expenses
3,865円.2 billion (7.0%)
◆だいやまーくGoods expenses
7,153円.6 billion
(13.0%)
Composition of Expenditures Classified by Type (FY2013 settlement)17Local Public Finance, 2015 –Illustrated–
Expenditures
4 Expenditures in Regular Portion and Great East Japan Earthquake Portion(Expenses Classified byType)
Regular portion
93,166円.5 billion
Great East Japan
Earthquake portion
4,245円.5 billion
◆だいやまーくOther
11,603円.1 billion
(12.5%)
◆だいやまーくReserves
3,473円.8 billion
(3.7%)
◆だいやまーくSubsidizing
expenses
9,335円.4 billion
(10.0%)
◆だいやまーくGoods expenses
8,190円.2 billion
(8.8%) ●くろまるOrdinary construction work expenses 12,852円.6 billion (13.8%)
●くろまるDisaster recovery project expenses 292円.8 billion ( 0.3%)
●くろまるPersonnel expenses
22,139円.2 billion
(23.8%)
●くろまるSocial assistance
expenses
12,185円.6 billion
(13.1%)
●くろまるDebt service
13,093円.6 billion
(14.1%)
◆だいやまーくMandatory expenses
47,418円.4 billion
(50.9%)
◆だいやまーくOther
405円.8 billion
(9.6%)
◆だいやまーくReserves
952円.5 billion
(22.4%)
◆だいやまーくSubsidizing
expenses
156円.0 billion
(3.7%)
◆だいやまーくGoods expenses
752円.1 billion (17.7%)
●くろまるOrdinary construction
work expenses
1,338円.8 billion
(31.5%)
●くろまるDisaster recovery
project expenses
589円.0 billion
(13.9%)
◆だいやまーくMandatory expenses
51円.3 billion (1.2%)
●くろまるPersonnel expenses 38円.7 billion (0.9%)
●くろまるSocial assistance expenses
7円.6 billion (0.2%)
●くろまるDebt service 5円.0 billion (0.1%)
◆だいやまーくInvestment expenses
13,145円.6 billion (14.1%)
◆だいやまーくInvestment expenses
1,927円.8 billion
(45.4%)
Great East Japan
Earthquake Portion
2,598円.4 billion
◆だいやまーくOther
4,294円.2 billion
(9.0%)
◆だいやまーくReserves
1,809円.4 billion
(3.8%)
◆だいやまーくSubsidizing
expenses
11,442円.5 billion
(24.1%)
◆だいやまーくGoods expenses
1,522円.4 billion
(3.2%)
●くろまるOrdinary construction work expenses 6,740円.5 billion (14.2%)
●くろまるDisaster recovery project expenses 172円.5 billion ( 0.4%)
◆だいやまーくInvestment expenses
6,913円.0 billion (14.6%)
●くろまるPersonnel expenses
13,334円.1 billion
(28.1%)
●くろまるSocial assistance
expenses
1,012円.2 billion
(2.1%)
●くろまるDebt service
7,127円.0 billion
(15.0%)
◆だいやまーくMandatory expenses
21,473円.3 billion
(45.3%)
◆だいやまーくOther
366円.0 billion
(14.2%)
◆だいやまーくReserves
489円.5 billion
(18.8%)
◆だいやまーくSubsidizing
expenses
583円.0 billion
(22.4%)
◆だいやまーくGoods expenses
266円.3 billion (10.2%)
●くろまるOrdinary construction
work expenses
458円.7 billion
(17.7%)
●くろまるDisaster recovery
project expenses
411円.3 billion
(15.8%)
●くろまるPersonnel expenses 21円.4 billion (0.8%)
●くろまるSocial assistance expenses 1円.7 billion (0.1%)
●くろまるDebt service 0円.4 billion (0.0%)
◆だいやまーくMandatory expenses
23円.5 billion (0.9%)
Regular portion
47,454円.8 billion
◆だいやまーくInvestment expenses
870円.1 billion (33.5%)
Regular portion
52,513円.4 billion
Great East Japan
Earthquake portion
2,346円.7 billion
◆だいやまーくOther
7,333円.5 billion
(13.9%)
◆だいやまーくReserves
1,664円.5 billion
(3.2%)
◆だいやまーくSubsidizing
expenses
3,943円.8 billion
(7.5%)
◆だいやまーくGoods expenses
6,667円.8 billion
(12.7%) ●くろまるOrdinary construction work expenses 6,752円.7 billion (12.9%)
●くろまるDisaster recovery project expenses 155円.7 billion ( 0.3%)
●くろまるPersonnel expenses
8,805円.0 billion
(16.8%)
●くろまるSocial assistance
expenses
11,173円.4 billion
(21.3%)
●くろまるDebt service
6,016円.8 billion
(11.5%)
◆だいやまーくMandatory expenses
25,995円.3 billion
(49.5%)
◆だいやまーくOther
43円.0 billion
(1.9%)
◆だいやまーくSubsidizing
expenses
172円.3 billion
(7.3%)
◆だいやまーくGoods expenses
485円.8 billion (20.7%)
●くろまるOrdinary construction
work expenses
937円.4 billion
(39.9%)
●くろまるDisaster recovery
project expenses
216円.5 billion
(9.2%)
◆だいやまーくInvestment expenses
1,153円.9 billion
(49.2%)
●くろまるPersonnel expenses 17円.4 billion (0.7%)
●くろまるSocial assistance expenses
5円.8 billion (0.2%)
●くろまるDebt service 5円.5 billion (0.2%)
◆だいやまーくMandatory expenses
28円.7 billion (1.2%)
◆だいやまーくReserves
463円.0 billion
(19.7%)
◆だいやまーくInvestment expenses
6,908円.5 billion (13.2%)
Municipalities
Prefectures
Net total
18 White Paper on Local Public Finance, 201586173100811131351156080100120140160180
Personnel expenses Social assistance expenses Debt service Investment expenses Other account transfers
Goods expenses Subsidizing expenses
FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013(%)1.3 1.4 1.4 1.4 1.6 1.8 2.0 2.1 2.3 2.5
0.3 0.3 0.3 0.3 0.2 0.2 0.2 0.2 0.2 0.22.42.7 2.8 3.0 3.2 3.3 3.35.05.2 5.02.42.6 2.6 2.72.72.73.13.4
3.5 3.60.60.5 0.6 0.40.50.50.50.5
0.8 0.77.07.5 7.7 7.8
8.2 8.59.111.2
12.0 12.02.70.25.03.70.612.202468101214
(trillion yen)
Social welfare Elderly welfare Child welfare Public welfare Other
FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013
*Indices use FY2003 as base year of 100
While investment expenses and personnel expenses were on a downward trend, social assistance expenses, subsidizing expenses and
transfers to other accounts rose.
Trends in Expenditures Classified by Type (Net total)
Trends in Breakdown of Social Assistance Expenses by Purpose19Local Public Finance, 2015 –Illustrated–
Expenditures
1.2 1.0 1.0 0.9 0.8 1.02.81.4
0.7 0.8
1.6 1.7
2.1 2.5 2.73.03.33.33.5 3.6
1.0 1.01.01.0 0.91.01.11.11.11.10.4 0.40.30.3 0.30.30.30.40.30.40.5 0.50.50.4 0.40.50.80.50.60.60.9 0.8
0.9 0.8 0.80.80.90.91.01.01.11.11.1 1.1 1.21.21.21.41.41.40.40.30.4 0.3 0.30.30.30.30.30.37.16.87.2 7.4 7.58.110.79.48.99.21.03.61.10.50.61.01.40.39.510357911(trillion yen)
General administration expenses
Commerce and industry expenses
Public welfare expenses
Civil engineering work expenses
Sanitation expenses
Education expenses
Agriculture, forestry and shery expenses
Other
FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013
1.7 1.6 1.5 1.5 1.4 1.4 1.4 1.3 1.3 1.2
1.2 1.2 1.2 1.2 1.2 1.1 1.1 1.2 1.2 1.2
0.7 0.7 0.8 0.8 0.9
0.1 0.0 0.0
1.1 1.2 1.3 1.3 1.4
0.9 0.9
1.0 1.0 1.0
1.1 1.1
1.2 1.2 1.30.10.00.10.10.00.00.00.10.00.10.00.10.00.00.00.00.00.00.00.14.54.6 4.6 4.6 4.6
4.8 4.9 5.0 5.15.21.21.21.41.30.00.15.10123456(trillion yen)
Local public enterprise accounts (Enterprise to which the Local Public Enterprise Law is not applied) National health insurance accounts
Elderly health care accounts Latter-stage elderly healthcare accounts Elderly nursing care insurance accounts Fund Other
FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013
Trends in Breakdown of Subsidizing Expenses by Purpose
Trends in Breakdown of Transfers to Other Accounts
20 White Paper on Local Public Finance, 2015
(billion yen)
27,000
26,000
25,000
24,000
23,000
16,000
15,000
11,000
10,000
9,000014,000
25,932.3
25,613.3
25,264.3 25,135.3 25,256.3
24,605.2
23,975.6
23,536.2 23,448.5
23,017.6
15,344.3 15,217.6 15,008.6 15,011.3 15,086.9
14,729.7 14,286.2
14,110.1 14,082.8 13,893.6
10,587.9 10,395.7 10,255.7 10,124.0 10,169.4
9,875.5 9,689.5
9,426.1 9,365.7 9,124.0
22,177.9
13,355.5
8,822.4
FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013
Net total Prefectures Municipalities(%)100020406080Employee salaries Base salaries Other allowances Temporary employee salaries
Retirement allowances Local public servant, mutual-aid associations, etc. Other
46.4%
10,282円.7 billion
46.4%
22.9%
5,074円.5 billion
22.9%
69.3%
15,366円.9 billion
69.3%5.5%1,223円.8 billion 5.5% 2.8%
386円.2 billion 2.8%
10.4%
2,307円.3 billion 10.4%
14.8%
3,279円.9 billion
14.8%0.1%8円.7 billion0.1%9円.8 billion0.0%9円.8 billion0.0%15.3%
2,037円.6 billion
15.3%9.6%1,276円.8 billion 9.6%9.5%837円.7 billion 9.5%
14.1%
1,242円.2 billion
14.1%
11.7%
1,030円.5 billion 11.7%
48.4%
6,469円.3 billion
48.4%
43.2%
3,813円.4 billion
43.2%
72.3%
9,654円.9 billion
72.3% 64.7%
5,712円.0 billion
64.7%
23.8%
3,184円.6 billion
23.8%
21.4%
1,889円.9 billion
21.4%
Net total
22,177円.9 billion
Prefectures
13,355円.5 billion
Municipalities
8,822円.4 billion0.0%1円.1 billion0.0%Personal expenses for FY 2013 decreased year on year due mainly to initiatives taken by each local government in accordance with the
national government’s measures to reduce salary payments to national public servants.
Trends in Personnel Expenses
Breakdown of Personnel Expenses by Item21Local Public Finance, 2015 –Illustrated–
How financially capable are local governments to respond to local demands?
Flexibility of the Financial Structure
It is necessary that local governments have financial resources for not only the mandatory expenses but also for projects, to properly
address challenges caused by changes in the social economy and administrative needs so that they can adequately meet the needs of
their residents. The extent to which the resources for such purposes are secured is called the "flexibility of the financial structure."
1 Ordinary Balance Ratio
The FY2013 ordinary balance ratio declined 1.1 percentage
points year on year, to 91.6%, staying above 90% for the
tenth consecutive year.
33.4 31.1
6.4 6.6
21.1 21.1
31.7 32.836.04.321.527.289.037.04.621.928.091.536.54.821.528.691.436.05.021.429.091.436.25.221.530.593.435.15.321.530.992.834.85.721.531.893.832.96.220.730.790.5 92.6 91.632.66.620.932.692.70102030405060708090100
Personnel expenses Social assistance expenses Debt service Other
FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2013
FY2012(%)90.3 90.7 90.287.490.5 90.2 90.3
92.0 91.8 91.889.290.8
92.5 92.6 92.6
94.7 93.995.991.9
94.9 94.693.091.5
91.4 91.4
93.4 92.893.890.592.692.791.691.689.0(%)9080100Prefectures
Net total Municipalities
FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2013
FY2012
FY2011
* Special wards and special districts, etc., are not included in net total and municipalities.
Shifts in the ordinary balance ratio
Breakdown of the ordinary balance ratio (Net total)
Ordinary
balance ratio =
General revenue resources allotted to personnel expenses, social
assistance expenses, debt service, etc×ばつ100
Ordinary general revenue resources, etc. (local tax + regular local allocation tax, etc.)
+ special exception portion of loans for covering decreases in local tax revenues
+ bonds for temporary substitution of local allocation tax
The ordinary balance ratio is the proportion of general revenue resources allotted to ordinary
expenses such as personnel expenses, social assistance expenses, debt service and other annually
disbursed expenses with regularity to a total amount of ordinary general revenue resources primarily
consisting of local tax and regular local allocation tax, special exception portion of loans for covering
decreases in local tax revenues and bonds for temporary substitution of local allocation tax.
22 White Paper on Local Public Finance, 2015
2 Real Debt Service Ratio and Debt Service Payment Ratio
Close attention should be paid to the trend of the debt service, which is the expense required to repay the principal and interest of the
debts of local governments and has an especially negative impact on financial flexibility. The real debt service ratio and the debt service
payment ratio are indices that determine the extent of the burden of the debt service.13.512.8 13.013.513.9 13.712.311.811.210.5 9.99.212.8
12.3 12.1 12.0 11.811.313.58.610.9
Prefectures Municipalities
Net total(%)89101112131415FY2007 FY2008 FY2009 FY2010 FY2011 FY2013
FY2012
*For more detailed information please refer to page 33.19.418.6 18.616.416.216.518.918.817.019.318.619.419.319.919.8 19.718.515.719.918.418.619.219.119.319.219.419.417.617.717.517.417.317.5201918171615(%)
FY2005
FY2004
FY2003 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2013
FY2012
Prefectures Municipalities
Net total
* Debt service payment ratio : 
The debt service payment ratio indicates the ratio of general revenue resources allocated for debt service (amount of repayment of the principal and
interest on local bonds) in the total amount of general revenue resources. This index is used to determine the flexibility of the financial structure by
assessing the degree to which debt service restricts the freedom of use of general revenue resources.
Trends in the Real Debt Service Ratio
Trends in the Debt Service Payment Ratio23Local Public Finance, 2015 –Illustrated–
What is the status of debt in local public finance?
Outstanding Local Government Borrowing
Notes : 
1. Outstanding local government bonds excludes special fund public investment bonds.
2. Outstanding public enterprise bonds (borne by the ordinary accounts) are estimates based on settlement account statistics.
1 Trends in Outstanding Local Government Borrowing
Outstanding local government borrowing amounted to approximately 146円 trillion at the end of FY2013, and has been increasing in recent
years with the growing issue of bonds for the extraordinary finacial measures. The figure is 1.44 times larger than the total revenue and
about 2.65 times larger than the total general revenue resources.
100.9
(trillion yen)45.0145.9
145.9
129.0
138.1
138.19.1127.7
140.6
140.612.9124.4
140.1
140.115.7121.2
139.1
139.117.9118.5
138.2
138.219.7115.8
137.4
137.421.6114.4
139.8
139.825.4110.7
142.1
142.131.4107.1
143.2
143.236.1104.1
144.7
144.740.63006090120150Bonds for the extraordinary nancial measures Other local bonds
FY2007
FY2003 FY2004 FY2005 FY2006 FY2008 FY2009 FY2010 FY2013
FY2012
FY2011
Note : Outstanding local government borrowing excludes special fund public investment bonds.
2 Trends in Outstanding Borrowing Borne by the Ordinary Accounts
Outstanding local public finance borrowing—which includes borrowing in the special account for local allocation tax and transfer tax for
addressing revenue resource shortages, as well as the redemption of public enterprise bonds borne by the ordinary accounts, remains at a
high level, amounting to approximately 201円 trillion at the end of FY2013.
(trillion yen)250200150100500
138.128.3198.3
198.331.8140.628.1201.5
201.532.8140.127.8201.4
201.433.6139.127.5200.2
200.233.6138.226.8198.6
198.633.6137.426.1197.1
197.133.6139.825.3198.7
198.733.6142.124.1199.8
199.833.6143.223.6200.4
200.433.5144.722.9201.0
201.033.4145.922.1201.4
201.433.3Outstanding borrowing from special account for local allocation tax and transfer tax grants
Outstanding public enterprise bonds
(included in ordinary accounts)
Outstanding local government bonds
FY2007
FY2003 FY2004 FY2005 FY2006 FY2008 FY2009 FY2010 FY2013
FY2012
FY2011
24 White Paper on Local Public Finance, 2015
What is the status of local public enterprises?
Local Public Enterprises
1 Ratio of Local Public Enterprises
Local public enterprises play a major role in improving the standard of living of residents.602004080100(%)Water-supply business
(including small-scale
water supply business)
Sewage business Transportation
business
(railways)
Transportation
business
(buses)
Hospitals
124.59 million
(99.5%)
Out of 125.21 million
Current water-supply
population
102.40 million
(91.3%)
Out of 112.16 million
Sewage disposal
population
3,050 million
(13.4%)
Out of 23,606 million
No. of passengers
per year
929 million
(20.6%)
Out of 4,505 million
No. of passengers
per year
194,000
(12.3%)
Out of 1,574,000
No. of hospital beds
Notes : 1. The graph shows the ratio of local public enterprises when the total number of business entities nationwide is set at 100.
2. Figures for the total number of enterprises nationwide have been compiled from statistical materials of related organizations. Figures for local public enterprises have been
compiled from figures for the total number of enterprises and settlements for the same fiscal year.25Local Public Finance, 2015 –Illustrated–
Local Public Enterprises
2 Number of Businesses Operated by Local Public Enterprises
There are 8,703 businesses that are operated by local public enterprises. By type of business, sewage accounts for the largest ratio,
followed, in order, by water supply, hospitals, care services, and residential development.
(End of FY2013)
◆だいやまーくOther
1,280 (14.7%)
◆だいやまーくSewage business
3,639 (41.8%)
◆だいやまーくResidential development
449 (5.2%)
◆だいやまーくCare services
582 (6.7%)
◆だいやまーくHospitals
642 (7.4%)
◆だいやまーくTotal water supply business
2,111 (24.3%)
No. of
businesses
8,703
●くろまるWater supply business
1,352 (15.5%)
●くろまるSmall-scale water supply business
759 (8.7%)
3 Scale of Financial Settlement
The scale of total financial settlement is 16,871円.7 billion. By type of business, sewage accounts for the largest ratio, followed, in order, by
hospitals, total water supply, transportation, and residential development.
◆だいやまーくOther
1,111円.4 billion (6.6%)
◆だいやまーくSewage business
5,524円.4 billion (32.7%)
◆だいやまーくResidential development
761円.6 billion (4.5%)
◆だいやまーくTransportation
1,008円.1 billion (6.0%)
◆だいやまーくTotal water supply business
(including small-scale water supply)
3,912円.6 billion (23.2%)
Scale of nancial
settlement
16,871円.7 billion
◆だいやまーくHospitals
4,553円.6 billion (27.0%)
(End of FY2013)
26 White Paper on Local Public Finance, 2015
4 Financial Status
Local public enterprises had a surplus of 508円.1 billion. By type of business, total water supply, electricity, and sewages showed a surplus.
FY2003
148.2
457.9
424.6
523.1
298.6
Total surplus
334.9
Total surplus
452.7
Total surplus
464.0 Total surplus
431.9
Total de cit
Total de cit
△しろさんかく154.1
Total de cit
Total de cit
△しろさんかく7.3
Total de cit
△しろさんかく3.7
Other 44.1
Sewage business 76.5
Electricity 10.6
Gas 0.2
Industrial-use water 16.4
Total water supply 187.1
(Including small-scale
water supply)
Transportation
△しろさんかく75.4
Hospitals △しろさんかく101.3
Other △しろさんかく10.0
Other 15.4 Other 50.6
Other 42.1
Sewage business 117.6
Sewage business 123.8
Sewage business 124.0
Electricity 9.2
Electricity 7.6
Transportation 34.0
Transportation 38.7
Transportation 26.3
Industrial-use water 10.4
Industrial-use water 21.4 Industrial-use water 22.8
Total water supply 262.7
(Including small-scale
water supply)
Total water supply 220.2
(Including small-scale
water supply)
Total water supply 210.1
(Including small-scale
water supply)
Total surplus
526.8
Other 72.1
Sewage business 126.4
Hospitals △しろさんかく42.9
Hospitals △しろさんかく42.9
Transportation 50.6
Industrial-use water 22.3
Total water supply 237.2
(Including small-scale
water supply)
Hospitals △しろさんかく107.0
Other △しろさんかく47.1
Other △しろさんかく6.1
Gas 3.4
Gas 3.4
Gas 0.8
Gas 0.8
Other △しろさんかく3.7
Other △しろさんかく3.7
Electricity 8.8
Electricity 8.8
Hospital 4.2
Hospital 4.2
Gas 5.2
Gas 5.2
Hospitals △しろさんかく1.1
Hospitals △しろさんかく1.1
Gas △しろさんかく1.5
Gas △しろさんかく1.5
Other △しろさんかく4.7
508.1
Total de cit
△しろさんかく46.3
Total surplus
554.4
Other 39.9
Sewage business 140.5
Electricity 15.8
Electricity 15.8
Transportation 77.0
Transportation 77.0
Industrial-use water 27.4
Total water supply 251.8
(Including small-scale
water supply)
Other △しろさんかく3.4
Other △しろさんかく3.4
Gas 2.0
Gas 2.0
Total balance
FY2009 FY2010 FY2011 FY2013
FY2012
FY2003 FY2009 FY2010 FY2011 FY2013
FY2012
(billion yen)6005004003002001000(billion yen)600500400300200100
△しろさんかく100
△しろさんかく200
△しろさんかく186.7
△しろさんかく300
Surplus
De cit0Hospitals 0.9
Hospitals 0.9
△しろさんかく6.1
Electricity 6.6
Electricity 6.6
Trends in the Financial Status of Local Public Enterprises27Local Public Finance, 2015 –Illustrated–
Impact of Great East Japan Earthquake
1 Settlement of Disaster-Struck Organizations
1.Specified Disaster-Struck Prefectures
In FY2013, the total revenues of the nine specified disaster-struck prefectures amounted to 11,069円.8 billion, decreasing by 337円.5 billion
year on year, or 3.0% (1.2% national increase). Total expenditures for the entities amounted to 10,504円.4 billion, falling by 271円.2 billion
year on year, or 2.5% (1.2% national increase).
* Specified disaster-struck prefectures: 
Prefectures stipulated in Article 2, Paragraph 2 of the act on special public finance support and assistance to deal with the Great East Japan
Earthquake (Act No. 40 of 2011). These prefectures are Aomori, Iwate, Miyagi, Fukushima, Ibaraki, Tochigi, Chiba, Niigata, and Nagano prefectures.
11,407円.3 billion
FY2013
FY2012
11,069円.8 billion
2,449円.9 billion
(22.1%)
2,373円.3 billion
(20.8%)
2,004円.4 billion
(18.1%)
2,059円.4 billion
(18.6%)
4,556円.1 billion
(41.2%)
2,293円.6 billion
(20.1%)
2,069円.7 billion
(18.1%)
4,670円.7 billion
(41.0%)
258円.9 billion (2.3%)
433円.8 billion (3.8%)%Local taxes Local allocation tax Special portion for earthquake restoration National treasury disbursements Other
10,775円.6 billion
FY2013
FY2012 1,066円.0billion
(9.9%)
1,517円.0 billion
(14.1%)
435円.4 billion (4.0%)
435円.4 billion (4.0%)
7,155円.4 billion
(66.4%)( %)334円.0 billion (3.1%)
General administrative expenses Public welfare expenses Disaster relief expenses Sanitation expenses Disaster recovery expenses Other
6,954円.4 billion
(66.2%)
399円.4 billion (3.8%)
399円.4 billion (3.8%)
601円.8billion
(5.6%)
601円.8billion
(5.6%)
449円.2 billion (4.3%)
449円.2 billion (4.3%)
1,902円.1 billion
(18.1%)
766円.3 billion (7.3%)
766円.3 billion (7.3%)
10,504円.4 billion
799円.3 billion (7.6%)
10,504円.4 billion
FY2012
FY2013
Mandatory expenses Investment expenses Ordinary construction expenses Disaster recovery project expenses Other Reserves
10,775円.6 billion
4,812円.5 billion
(45.8%)
5,019円.5 billion
(46.6%)
3,850円.6 billion
(36.7%)
4,083円.4 billion
(37.9%)
1,841円.3 billion (17.5%)
1,392円.4 billion (13.3%)%)1,237円.3 billion (11.5%)
448円.9billion(4.3%))435円.3billion(4.0%)
891円.0 billion (8.5%)%)954円.9 billion (8.9%))1,672円.7 billion (15.5%)
Revenues
Expenditures Classified by Purpose
Expenditures Classified by Type
28 White Paper on Local Public Finance, 2015
2.Specified Disaster-Struck Municipalities
In FY2013, the total revenues of the 227 municipalities designated as specified disaster-struck municipalities amounted to 8,152円.5 billion,
decreasing by 361円.6 billion year on year, or 4.2% (1.6% national increase). Total expenditures for the entities amounted to 7,621円.2
billion, falling by 410円.9 billion year on year, or 5.1% (1.3% national increase).
* Specified disaster-struck municipalities: 
Municipalities designated in Appended Table 1 and those designated in Appended Tables 2 and 3 that are other than specified disaster-struck
local public bodies of the Japanese government ordinance (No. 127, 2011) concerning Article 2, Paragraphs 2 and 3 of the act on special public
finance support and assistance to deal with the Great East Japan Earthquake. (A total of 227 organizations in 11 prefectures, including, 33
organizations within Iwate Prefecture, 35 organizations within Miyagi prefecture, and 59 organizations within Fukushima prefecture.)
8,152円.5 billion
8,514円.1 billion
2,186円.9 billion
(26.8%)
1,229円.6 billion
(15.7%)
1,645円.7 billion
(20.2%)
3,040円.3 billion
(37.3%)
231円.9 billion (2.8%)
2,145円.5 billion
(25.2%)
1,381円.2 billion
(16.2%)
2,211円.2 billion
(26.0%)
2,776円.2 billion
(32.6%)
298円.6 billion (3.5%)
Local tax Local allocation tax Special portion for earthquake restoration National treasury disbursements Other
FY2012
FY2013
8,032円.1 billion
FY2012
FY2013
General administrative expenses Public welfare expenses Disaster relief expenses Sanitation expenses Disaster recovery expenses Other
7,621円.2 billion
3,218円.9 billion
(42.2%)
2,939円.9 billion
(36.7%)
1,251円.8 billion
(16.4%)
1,995円.7 billion
(24.8%)
508円.1 billion (6.7%)%)506円.7 billion
(6.3%)
232円.9 billion (3.1%)
232円.9 billion (3.1%)( %)292円.2 billion (3.6%)
2,403円.5 billion
(31.6%)
2,297円.6 billion
(28.6%)
583円.1 billion (7.7%)%)514円.6 billion (6.4%)
7,621円.2 billion
FY2012
FY2013
Mandatory expenses Investment expenses Ordinary construction expenses Disaster recovery project expenses Other Reserves
8,032円.1 billion
3,495円.7 billion
(45.9%)
4,171円.4 billion
(51.9%)
2,699円.7 billion
(35.4%)
2,744円.7 billion
(34.2%)
1,425円.8 billion (18.7%)
1,425円.8 billion (18.7%)
1,116.0 billion ( %)
1,116円.0 billion (13.9%)
1,193円.3 billion (15.7%)
1,193円.3 billion (15.7%) 232円.4 billion (3.0%) 667円.1 billion (8.8%)( %)824円.0 billion (10.3%)
292円.0 billion (3.6%)
292円.0 billion (3.6%)
1,456円.5 billion ( %)
1,456円.5 billion (18.1%)
Revenues
Expenditures Classified by Purpose
Expenditures Classified by Type29Local Public Finance, 2015 –Illustrated–
Impact of Great East Japan Earthquake
2 Financial Status of Businesses of Local Public Enterprises of Disaster-Struck Organizations
Total revenues and expenditures of local public enterprises of disaster-struck organizations amounted to a surplus of 59円.0 billion,
decreasing by 17円.3 billion year on year, or 22.7%. There were 844 businesses with surpluses, or 90.0% of all businesses, while 94
businesses had deficits, or 10.0%.
(businesses, billions of yen)84889
△しろさんかく21円.9 billion
98円.2 billion
Net amount 76円.3 billion84494
△しろさんかく40円.9 billion
99円.9 billion
Net amount 59円.0 billion
Surplus De cit No. of businesses with de cits
No. of businesses with surpluses-50-250255075100FY2012 FY201310203040506070-20-10080(billion yen)
0円.9 billion
2円.1 billion
1円.1 billion
1円.6 billion
△しろさんかく0円.7 billion
1円.0 billion
4円.0 billion
16円.5 billion
36円.8 billion
6円.3 billion
4円.9 billion
5円.9 billion
19円.5 billion
4円.2 billion
9円.2 billion
39円.1 billion
Net amount 76円.3 billion
Net amount 76円.3 billion Net amount 59円.0 billion
Net amount 59円.0 billion
Total water supply (including small-scale water supply) Electricity
Industrial-use water Gas
Transportation Other
Hospitals Sewage business
Surplus
76円.3 billion
Surplus
76円.8 billion
FY2012 FY2013
△しろさんかく17円.1 billion
De cit
△しろさんかく17円.8 billion
Financial Status of Businesses of Local Public Enterprises of Disaster-Struck Organizations
Settlements by Businesses of Local Public Enterprises of Disaster-Struck Organizations
30 White Paper on Local Public Finance, 2015
Promotion of the Soundness of Local Public Finance
1 Overview of the Act on Assurance of Sound Financial Status of Local Governments
A number of drawbacks were pointed out with the conventional system of financial reconstruction of local governments, including the lack
of a legal obligation to disclose comprehensible financial information and of rules for early warning. In response, the Act on Assurance of
Sound Financial Status of Local Governments was enacted and has been in force since April 2009. The act establishes new indexes and
requires local governments to disclose them thoroughly, aiming to quickly achieve financial soundness or rebuild.
Sound stage
◆だいやまーくEstablishment of indexes and
thorough disclosure
●くろまる Flow indexes: Real de cit ratio,
consolidated real de cit ratio, real debt
service ratio
●くろまる Stock indexes: Future burden ratio
=indexes by real liabilities, including
public enterprises, third-sector
enterprises, etc.
➡Subject to auditor inspection, reported to
the council and publicly announced
Early nancial soundness
restoring stage
◆だいやまーくRestoring nancial soundness through
their own efforts
●くろまる Formulation of nancial plans (approval by the
council), mandatory requests for external auditing
●くろまる Report on progress of implementation to the council
and public announcement every scal year
●くろまる If the early achievement of nancial soundness is
deemed to be signi cantly dif cult, the Minister for
Internal Affairs and Communications or the prefectural
governor makes necessary recommendations
Financial rebuilding stage
◆だいやまーくSolid rebuilding through
involvement of the central
government, etc.
●くろまる Formulation of nancial rebuilding plans
(approval by the council), mandatory
requests for external auditing
●くろまる Agreement on the nancial rebuilding
plan can be sought through consultation
with the Minister for Internal Affairs and
Communications
●くろまる If nancial management is deemed not to
conform with the plan, the Minister for
Internal Affairs and Communications
makes necessary recommendations,
such as budget changes
Financial soundness of public enterprise
Real de cit ratio
Prefectures:3.75%
Municipalities:11.25% 〜 15%
Prefectures:5%
Municipalities:20%
Consolidated real
de cit ratio
Prefectures:8.75%
Municipalities:16.25% 〜 20%
Prefectures:15%
Municipalities:30%
Real debt service ratio 25% 35%
Future burden ratio
Finance shortfall ratio
(for each public enterprise)
Prefectures, Government-ordinance-
designated city
:400%
Municipalities:350%
Public announcement of indexes began with FY2007 settlement
of accounts. Obligatory formulation of nancial soundness plan
was applied as of FY2008 settlement of accounts.
* The real de cit ratio
and consolidated real
de cit ratio standards
for Tokyo were set
separately from the
general municipalities
ratios.
Early nancial soundness restoring standard Financial rebuilding standard
Sound
nance
Financial
deterioration20%Management soundness standard
Outline of the Act on Assurance of Sound Financial Status of Local Governments31Local Public Finance, 2015 –Illustrated–
Promotion of the Financial Soundness of Local Public Finance
General
account
General
account, etc.
Special
accounts
Local
governmentsRealdecitratioRealdecitratio
ConsolidatedrealdecitratioRealdebt
service
ratio
Future
burden
ratioBadliabilities
(Previous Reconstruction Law)
Partial administrative associations,
wide-area local public bodies
Public
enterprise
accounts
Of this,
public
enterprise
accounts
Local public corporations,
third-sector enterprises, etc.
Finance
shortfall
ratio
* Calculated for each
public enterprise account
Calculated for each
public enterprise
account
(Act on Act on Assurance of Sound Financial Status of Local Governments)
2 Status of the Ratios for Determining Financial Soundness0510152025
(No. of local governments)242422221111191913138822 00 22
Local governments with real de cit Of this number, those equaling or exceeding the early nancial soundness standard Of this number, those equaling or exceeding the nancial rebuilding standard
FY2007 FY2008 FY2009 FY2010 FY2011 FY2013
FY2012
The following graph shows the trend in the number of local governments with
a real deficit.
Based on FY2013 account settlements, among the municipalities, there were
two local governments with a real deficit (i.e., with a real deficit ratio that
exceeds 0%). Of those local governments, none had a real deficit ratio that
equals or exceeds the early financial soundness restoring standard.
Targets of the Ratio for Determining Financial Soundness
Real Deficit Ratio
Real deficit ratio =
Real deficit amount of real account, etc.
Standard financial scale
The real deficit ratio is an index of the deficit level of the general account,
etc. of local governments offering welfare, education, community-
building, and other services, and represents the extent to which financial
administration has worsened.
32 White Paper on Local Public Finance, 2015010203040506070807171111122221139393131171799 77 66Local governments with a consolidated real de cit Of this number, those equaling or exceeding the early nancial soundness standard
Of this number, those equaling or exceeding the nancial rebuilding standard
(No. of local governments)
FY2007 FY2008 FY2009 FY2010 FY2011 FY2013
FY2012
The following graph shows the trend in the number of local governments with a
consolidated real deficit.
Based on FY2013 account settlements, there were six local governments with a
consolidated real deficit (i.e., with a consolidated real deficit ratio that exceeds 0%)
among municipalities. Of those local governments, none had a consolidated real
deficit ratio that equals or exceeds the early financial soundness restoring standard.
Local governments with real debt service ratio equal to or exceeding 18% Of this number, those equaling or exceeding the early nancial soundness standard
Of this number, those equaling or exceeding the nancial rebuilding standard
FY2007 FY2008 FY2009 FY2010 FY2011 FY2013
FY2012
(No. of local governments)436436333322202011399399121230630644 1117517511114
114 116363114141010020030040050011The following graph shows the trend in the
number of local governments with a real debt
service ratio equal to or exceeding 18%.
Based on FY2013 account settlements, there
was one local government with a real debt
service ratio equal to or exceeding the financial
rebuilding standard.
Consolidated Real Deficit Ratio
Real Debt Service Ratio
Consolidated real deficit ratio =
Consolidated real deficit
Standard financial scale
The consolidated real deficit ratio is an index of the deficit level for
all local governments by taking the sum of the deficits and surpluses
of all accounts, and represents the extent to which financial
administration has worsened for local governments as a whole.
Real debt service ratio
(3-year average)=(Redemption of principal and interest of local bonds + quasi-redemption of principal and interest)
– (special revenue resources + amount included in standard financial requirements pertaining to
redemption and quasi-redemption of principal and interest)
Standard financial scale – (amount included in standard financial requirements pertaining to
redemption and quasi-redemption of principal and payments)
The real debt service ratio is an index of the size of the redemption amount of debts (local bonds) and similar
expenditure, and represents the cash-flow level.
* Local governments with a real debt service ratio equal to or exceeding 18% require the approval of the Minister
of Internal Affairs and Communications, etc., to issue local government bonds.33Local Public Finance, 2015 –Illustrated–
Promotion of the Financial Soundness of Local Public Finance
FY2007 FY2008 FY2009 FY2010 FY2011 FY2013
FY2012
(No. of local governments)01234565533 3322 22 2211
Local governments with future burden ratio equaling or exceeding the early nancial soundness restoring standard
The following graph shows the trend in the number of
local governments with a future burden ratio equal to or
exceeding the early financial soundness restoring standard.
Based on FY2013 account settlements, there was one
local government with a future burden ratio equal to or
exceeding the early financial soundness restoring standard.
(No. of local public enterprises)05010015020025030015615625625661612022024949162
162 3838119
119 363688882020696918186060Local public enterprises with nancial shortfall ratio Of this number, those equaling or exceeding the management soundness standard
FY2007 FY2008 FY2009 FY2010 FY2011 FY2013
FY2012
The following graph shows the trend in the number of local public enterprises with a
financial shortfall.
Based on FY2013 account settlements, there were 60 local public enterprises with
a financial shortfall (i.e., with a financial shortfall ratio that exceeds 0%) among
municipalities. Of these, 18 local public enterprises had a financial shortfall ratio that
equals or exceeds the management soundness standard.
Future Burden Ratio
Financial Shortfall Ratio
Future
burden ratio =
Future burden amount – (amount of appropriable funds + estimated amount of special revenue source
+ amount expected to be included in standard financial requirements pertaining to outstanding local
government bonds, etc.)
Standard financial scale – (amount included in standard financial requirements pertaining to
redemption of principal and interest and quasi-redemption of principal and interest)
The future burden ratio is an index of the current outstanding balance of burden, including that of
debts (local bonds) of the general account, etc. as well as other likely future payments, and represents
the extent to which finances may be squeezed in the future. No financial rebuilding standard is
established for the future burden ratio.
Financial shortfall ratio =
Deficit of funds
Size of business
The financial shortfall ratio is an index of the deficit of funds
of public enterprises compared to the size of their profit (size
of business of local public enterprises), and represents the
extent to which financial health has worsened.
34 White Paper on Local Public Finance, 2015
http://www.soumu.go.jp/
Financial Management Division,
Local Public Finance Bureau,
Ministry of Internal Affairs and
Communications
Address: 2-1-2 Kasumigaseki, Chiyoda-ku,
Tokyo 100-8926, Japan
Tel.: +81-(0)3-5253-5111 (ext. 5649)
http://www.soumu.go.jp
All Rights Reserved
F Y 2 0 1 3 Se ttl e me nt
White Paper on
Local Public Finance, 2015
– Illustrated –