FY2014 Settlement
White Paper on
Local Public Finance, 2016
– Illustrated –
Contents1 "Net totals of the revenues and expenditures" are the ordinary net account totals of 3,081 organizations (47
prefectures, 1,718 municipalities, 23 special wards, 1,227 partial administrative associations and 113 wide-
area local public bodies).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
FY2014 Settlement Overview .................................................................. 05
Revenues ................................................................................................ 07
1. Revenue Breakdown .............................................................................. 07
2. Revenues in Regular Portion and Great East Japan Earthquake Portion ........................ 08
3. Revenue Trends .................................................................................... 09
4. Ratio of National Taxes and Local Taxes ......................................................... 10
5. Local Taxes (Composition, Trends, Index of Per Capita Tax Revenue) ...................................................... 10
6. Local Allocation Tax .............................................................................. 13
Expenditures
............................................................................................. 14
1. Expenses Classified by Purpose .................................................................. 14
2. Expenditures in Regular Portion and Great East Japan Earthquake Portion (Expenses Classified by Purpose) ... 15
3. Breakdown of Expenses Classified by Purpose(Public Welfare Expenses, Educational Expenses, Civil Engineering Work Expenses) 16
4. Expenses Classified by Type ..................................................................... 18
5. Expenditures in Regular Portion and Great East Japan Earthquake Portion(Expenses Classified by Type) ... 19
6. Breakdown of Expenses Classified by Type
(Social Assistance Expenses, Personnel Expenses, Ordinary Construction Work Expenses, Subsidizing Expenses, Transfers to Other Accounts) ............ 20
Flexibility of the Financial Structure ......................................................... 24
1. Ordinary Balance Ratio (Trends and Breakdown) ............................................................ 24
2. Real Debt Service Ratio and Debt Service Payment Ratio (Trends) ................................. 25
Outstanding Local Government Borrowing ............................................. 26
1. Trends in Outstanding Local Government Bonds ................................................ 26
2. Trends in Outstanding Borrowing Borne by the Ordinary Accounts .............................. 26
Local Public Enterprises ........................................................................... 27
1. Presence of Local Public Enterprises ............................................................ 27
2. Number of Businesses Operated by Local Public Enterprises
.................................... 28
3. Scale of Financial Settlement ..................................................................... 28
4. Financial Status .................................................................................... 29
Impact of Great East Japan Earthquake ................................................... 30
1. Settlement of Disaster-Struck Organizations (Revenues, Expenditures (Classified by Purpose, Type)) .................. 30
2. Financial Status of Businesses of Local Public Enterprises of Disaster-Struck Organizations ... 32
Promotion of the Soundness of Local Public Finance .............................. 33
1. Overview of the Act on Assurance of Sound Financial Status of Local Governments ......... 33
2. Status of the Ratios for Measuring Financial Soundness and Financial Shortfall Ratio ......... 34
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 FY2014, and the initiatives of local governments towards sound
public finances (mainly the status of the ratios for measuring 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, but classification of these accounts
varies between local governments. Therefore, the accounts are classified in a standardized manner into 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.
Local Government Accounts
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 Sewerage systems ●くろまる Residential land development Etc.
Ordinary accounts
Other accounts
(Public business
accounts)
01 White Paper on Local Public Finance, 2016
How large is local public finance?
The ratio of expenditure by local goverments in gross domestic product (expenditure) is 11.9%, about 2.5 times that of the central
government.
Gross Domestic Product (Expenditure) and Local Public Finance (FY2014)
22,790円.7 billion
(4.7%)
22,790円.7 billion
(4.7%)
58,098円.3 billion
(11.9%)
58,098円.3 billion
(11.9%)
43,827円.9 billion
(9.0%)
43,827円.9 billion
(9.0%)
124,716円.9 billion
(25.5%)
302,971円.5 billion
(61.9%)
302,971円.5 billion
(61.9%)
73,280円.0 billion
(15.0%)
73,280円.0 billion
(15.0%)
△しろさんかく50050100150200250300350400(trillion yen)
376,251円.5billion
(76.8%)
376,251円.5billion
(76.8%)
▲さんかく11,345円.0 billion
(▲さんかく2.3%)
▲さんかく11,345円.0 billion
(▲さんかく2.3%)
Private sector Net export of goods and services
Government sector
Gross Domestic Product
(expenditure, at current prices)
489,623円.4 billion (100%)
Central government Local governments
Social security funds
Corporate sector
Household sector
Net export02Local Public Finance, 2016 –Illustrated–
How large is local government expenditure in total public expenditure?
The Role of Local Public Finance
Looking at the breakdown of public expenditure classified by final expenditure entity, local government expenditure accounts for 41.1% of
Government final consumption expenditure, and 69.8% of Public gross capital formation. As a final expenditure entity, local governments
above the central government and play a major role for the national economy.
Breakdown of public expenditures
Trends in public expenditures0.1%(%)
Public
expenditures
124,716円.9 billion
(100.0%)
●くろまるPublic gross capital formation
7,139円.5 billion (5.7%)
Central government
22,790円.7 billion (18.3%)
●くろまるGovernment
nal consumption expenditure
15,651円.2 billion (12.5%)
●くろまるGovernment
nal consumption expenditure
41,509円.1 billion (33.3%)
●くろまるPublic gross capital formation
16,589円.2 billion (13.3%)
●くろまるPublic gross capital formation
34円.2 billion (0.0%)
●くろまるGovernment
nal consumption expenditure
43,793円.7 billion (35.1%)
Social security funds
43,827円.9 billion(35.1%)
Local governments
58,098円.3 billion (46.6%)
0 20 40 60 80 100
Government nal
consumption expenditure
100,954円.0 billion
Public gross capital
formation
23,762円.9 billion
15.5% 41.1% 43.4%
30.1% 69.8%
Central government Local governments Social security funds
54,114.8
(11.1)
23,913.9
(4.9)
36,121.7
(7.4)
114,150円.4
billion
56,468.2
(11.7)
23,359.5
(4.8)
42,578.6
(8.8)
122,406円.2
billion
58,098.3
(11.9)
22,790.7
(4.7)
43,827.9
(9.0)
124,716円.9
billion
58,577.9
(11.6)
24,029.9
(4.8)
34,092.5
(6.7)
116,700円.3
billion
60,783.4
(12.1)
23,812.8
(4.7)
33,130.3
(6.6)
117,726円.5
billion
56,992.7
(11.2)
23,633.5
(4.6)
34,081.4
(6.7)
114,707円.8
billion
55,201.1
(11.6)
21,612.7
(4.6)
41,586.6
(8.8)
118,400円.3
billion
55,339.8
(11.7)
24,109.0
(5.1)
37,585.7
(7.9)
117,034円.5
billion
55,691.5
(11.6)
22,091.5
(4.6)
39,034.2
(8.1)
116,817円.4
billion
55,323.5
(11.7)
21,795.9
(4.6)
40,400.6
(8.5)
117,519円.9
billion
55,712.2
(10.9)
24,326.5
(4.7)
35,352.0
(6.9)
115,390円.6
billion
●くろまるCentral
government
●くろまるLocal
government
●くろまるSocial security
funds
Public
expenditures
FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2014
FY2013
FY2012 Amount of
public expenditures
Percentage of public
expenditures in gross
domestic product
(expenditure)
Local share of public
expenditures
(23.3)
(47.4)
(25.4)
(46.1)
(25.5%)
(46.6%)
(23.1)
(50.2)
(23.4)
(51.6)
(22.5)
(49.7)
(25.0)
(46.6)
(24.7)
(47.3)
(24.3)
(47.7)
(24.8)
(47.1)
(22.5)
(48.3)
03 White Paper on Local Public Finance, 2016
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.
Share of Expenditures by Purpose of Central and Local Governments (final expenditure based)%99% %1%%
88% %12%%
79% %21%%
75% %25%%
37% %63%%
49% %51%%
74% %26%%
48% %52%4%4% %96%%100%%100%%81% %19%%100%%
73% %27%%
70% %30%%
66% %34%%
65% %35%Sanitation expenses 3.7%
School education expenses 8.9%
Land development expenses 8.4%
Commercial and
industrial expenses 5.0%
Disaster recovery expenses,
etc. 0.6%
Debt services 21.4%
Pension expenses
(of public welfare expenses) 6.4%
Defense expenses 3.0%
Other 1.8%
Judicial, police, and
re service expenses 4.0%
Social education
expenses, etc.2.8%Public welfare expenses
(excluding pension expenses) 21.0%
Land conservation expenses 1.5%
Agriculture, forestry and
shery expenses 1.7%
Housing expenses, etc. 1.7%
Onkyu pension expenses 0.3%
General administrative
expenses, etc. 7.7%
Public health centers, garbage disposal, etc.
Public health centers, garbage disposal, etc.
Elementary and junior high schools, kindergartens, etc.
Elementary and junior high schools, kindergartens, etc.
Community centers, libraries, museums, etc.
Community centers, libraries, museums, etc.
Rivers and coasts
Rivers and coasts
Family register, basic resident register, etc.
Family register, basic resident register, etc.
Urban planning, roads and bridges, public housing, etc.
Urban planning, roads and bridges, public housing, etc.
Child welfare, elderly care and welfare, public assistance, etc.
Child welfare, elderly care and welfare, public assistance, etc.
Local 58.3%
Local 58.3% Central 41.7%
Central 41.7%04Local Public Finance, 2016 –Illustrated–
FY2014 Settlement Overview
1 Revenues
102,083円.5 billion (up 983円.6 billion, 1.0% year on year)
Regular portion: 97,490円.4 billion (up 1,261円.5 billion, 1.3% year on year)
Great East Japan Earthquake portion: 4,593円.1 billion (down 277円.8 billion, 5.7% year on year)
Revenues in the regular portion increased despite a decrease in National treasury disbursements, as general revenue resources were
boosted by the increase in Local taxes caused by the raise in Two corporate taxes and Local consumption tax, and the increase in Local
transfer taxes caused by the raise in Local corporation special transfer tax.
The decrease in revenues in the Great East Japan Earthquake portion resulted from a decrease in National treasury disbursements
(Disaster recovery project expenses disbursements), etc.
2 Expenditures
98,522円.8 billion (up 1,110円.8 billion, 1.1% year on year)
Regular portion: 94,511円.2 billion (up 1,344円.7 billion, 1.4% year on year)
Great East Japan Earthquake portion: 4,011円.6 billion (down 233円.9 billion, 5.5% year on year)
The increase of expenditures in the regular portion resulted from an increase of Social assistance expenses, Ordinary construction work
expenses, etc.
The decrease in expenditures in the Great East Japan Earthquake portion resulted from a decrease in Goods expenses (expenses
related to disaster waste disposal), etc.
3 Revenue and Expenditure Settlement
The real balance showed a surplus of 1,838円.3 billion.
Category
Settlement Period No. of local governments with a deficit
FY2014 FY2013 FY2014 FY2013
Real balance 1,838円.3 billion 1,957円.8 billion 2 4
Single year balance ▲さんかく119円.8 billion 190円.9 billion 1,605 1,379
Real single year
balance
231円.9 billion 763円.7 billion 1,502 1,138
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.
05 White Paper on Local Public Finance, 2016
4 Trend in Scale of Account Settlement
Both revenues and expenditures of the regular portion have increased for two consecutive years.
5 Major Financial Indices
Ordinary balance ratio rose 0.5 percentage points year on year, to 92.1%.
Real debt service ratio declined 0.5 percentage points, to 10.4%.
Category FY2014 FY2013 Change
Ordinary balance ratio 92.1% 91.6% 0.5
Real debt service ratio 10.4% 10.9% ▲さんかく0.5
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 200,525円.9 billion (down 835円.8 billion,
0.4% year on year).
Category FY2014 FY2013 Change amount Change rate
Outstanding local government bonds 145,984円.1 billion 145,918円.9 billion 65円.2 billion 0.0%
Outstanding local government bonds
(excluding Bonds for the extraordinary
financial measures)
97,500円.1 billion 100,955円.4 billion ▲さんかく3,455円.3 billion ▲さんかく3.4%
Outstanding borrowing from the special
accounts for Local allocation tax
33,117円.3 billion 33,317円.3 billion ▲さんかく200円.0 billion ▲さんかく0.6%
Outstanding public enterprise bonds
(borne by ordinary accounts)
21,424円.5 billion 22,125円.5 billion ▲さんかく701円.0 billion ▲さんかく3.2%
Total 200,525円.9 billion 201,361円.7 billion ▲さんかく835円.8 billion ▲さんかく0.4%
Note : Outstanding public enterprise bonds (borne by ordinary accounts) are estimates based on settlement account statistics.
FY2004 FY2012 FY2013 FY2014
FY2010 FY2011
(trillion yen)850909510010599.896.497.593.8
100.194.891.197.05.36.095.05.092.54.5101.197.496.2 97.54.993.294.54.293.491.2
102円.1 trillion
98円.5trillion
Earthquake
portion4.6Earthquake
portion4.6Earthquake
portion4.0Earthquake
portion4.0Expenditures (Earthquake portion)
Expenditures (Regular portion)
Revenues (Earthquake portion)
Revenues (Regular portion)06Local Public Finance, 2016 –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 FY2014, General revenue resources accounted for 56.1%.
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 FY2014 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.13, "6. 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.
Bonds for the extraordinary
financial measures
: 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.
Composition of Revenues (FY2014 settlement)
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
102,083円.5 billion
◆だいやまーくNational treasury disbursements
15,518円.9 billion (15.2%)
◆だいやまーくLocal bonds
11,518円.5 billion (11.3%)
◆だいやまーくOther revenue resources
17,773円.2 billion (17.4%)
●くろまるLocal taxes
36,785円.5 billion (36.0%)
●くろまるBonds for the extraordinary
nancial measures
5,464円.7 billion (5.4%)
●くろまるLocal transfer tax
2,936円.9 billion (2.9%)
●くろまるSpecial local grants
119円.2 billion (0.1%)
●くろまるLocal allocation tax
17,431円.4 billion (17.1%)
General revenue resources
57,272円.9 billion (56.1%)
Prefectures
total
51,695円.0 billion
Municipalities
total
58,130円.5 billion
◆だいやまーくNational treasury
disbursements
6,429円.2 billion (12.4%)
◆だいやまーくLocal bonds
6,143円.6 billion
(11.9%)
◆だいやまーくOther revenue resources
9,865円.6 billion (19.1%)
◆だいやまーくNational treasury
disbursements
9,089円.7 billion (15.6%)
◆だいやまーくLocal bonds
5,398円.8 billion
(9.3%)
◆だいやまーくPrefectural
disbursements
3,715円.2 billion
(6.4%)
◆だいやまーくOther revenue resources
9,874円.0 billion (17.0%)
●くろまるLocal taxes
17,794円.0 billion
(34.4%)
●くろまるLocal transfer tax
2,534円.6 billion
(4.9%)
●くろまるSpecial local grants
47円.7 billion
(0.1%)
●くろまるLocal allocation tax
8,878円.8 billion
(17.2%)
●くろまるLocal taxes
18,991円.5 billion
(32.7%)
●くろまるLocal transfer tax
402円.3 billion
(0.7%)
●くろまるSpecial local grants
71円.5 billion
(0.1%)
●くろまるLocal allocation tax
8,552円.6 billion
(14.7%)
●くろまるBonds for the
extraordinary
nancial measures
3,392円.7 billion
(6.6%)
●くろまるOther general revenue resources
1円.5 billion (0.0%)
●くろまるOther general revenue resources
2,034円.9 billion (3.5%)
●くろまるBonds for the
extraordinary
nancial measures
2,072円.1 billion (3.6%)
General revenue resources
30,052円.8 billion (51.7%)
General revenue resources
29,256円.6 billion (56.6%)
07 White Paper on Local Public Finance, 2016
2 Revenues in Regular Portion and Great East Japan Earthquake Portion
Prefectures
Net Total
Municipalities
Great East Japan
Earthquake portion
4,593円.1 billion
◆だいやまーくNational treasury
disbursements
13,758円.0 billion
(14.1%)
●くろまるOf this amount, ordinary
construction expenses were
1,457円.0 billion (1.5%)
●くろまるOf this amount, recovery and
reconstruction expenses were
178円.1 billion (0.2%)
◆だいやまーくLocal bonds
11,232円.9 billion (11.5%)
◆だいやまーくOther revenue resources
15,822円.0 billion (16.3%)
◆だいやまーくGeneral revenue resources
56,677円.5 billion (58.1%)
Regular portion
97,490円.4 billion
◆だいやまーくNational treasury
disbursements
1,703円.9 billion (37.1%)
●くろまるOf this amount, ordinary construction
expenses were
183円.3 billion (4.0%)
●くろまるOf this amount, recovery and
reconstruction expenses were
290円.7 billion (6.3%)
●くろまるOf this amount, grants to measures
for earthquake disaster reconstruction were
539円.9 billion (11.8%)
◆だいやまーくLocal bonds
285円.5 billion (6.2%)
◆だいやまーくGeneral revenue resources 595円.4 billion (13.0%)
●くろまるOf this amount, earthquake disaster reconstruction
allocation tax was 514円.4 billion (11.2%)
◆だいやまーくOther revenue resources
2,008円.3 billion
(43.7%)
Great East Japan
Earthquake portion
2,567円.9 billion
◆だいやまーくNational treasury
disbursements
5,505円.2 billion
(11.2%)
●くろまるOf this amount, ordinary
construction expenses were
979円.0 billion (2.0%)
●くろまるOf this amount, recovery and
reconstruction expenses were
128円.4 billion (0.3%)
◆だいやまーくLocal bonds
6,080円.9 billion (12.4%)
◆だいやまーくOther revenue resources
8,593円.2 billion (17.5%)
◆だいやまーくGeneral revenue resources
28,947円.8 billion (58.9%)
Regular portion
49,127円.1 billion
◆だいやまーくNational treasury
disbursements
890円.9 billion (34.7%)
●くろまるOf this amount, ordinary construction
expenses were
53円.3 billion (2.1%)
●くろまるOf this amount, recovery and
reconstruction expenses were
237円.0 billion (9.2%)
●くろまるOf this amount, grants to measures
for earthquake disaster reconstruction were
73円.3 billion (2.9%)
◆だいやまーくLocal bonds
62円.7 billion (2.4%)
◆だいやまーくGeneral revenue resources 308円.9 billion (12.0%)
●くろまるOf this amount, earthquake disaster reconstruction
allocation tax was 274円.1 billion (10.7%)
◆だいやまーくOther revenue resources
1,305円.4 billion
(50.9%)
Great East Japan
Earthquake portion
2,516円.7 billion
◆だいやまーくNational treasury
disbursements
8,252円.7 billion
(14.8%)
●くろまるOf this amount, ordinary
construction expenses were
478円.0 billion (0.9%)
●くろまるOf this amount, recovery and
reconstruction expenses were
49円.7 billion (0.1%)
◆だいやまーくLocal bonds
5,173円.9 billion (9.3%)
◆だいやまーくOther revenue resources
9,107円.8 billion (16.4%)
◆だいやまーくPrefectural disbursements
3,313円.1 billion (6.0%)
◆だいやまーくGeneral revenue resources
29,766円.3 billion (53.5%)
Regular portion
55,613円.8 billion
◆だいやまーくNational treasury
disbursements
813円.0 billion (32.3%)
●くろまるOf this amount, ordinary construction
expenses were
130円.0 billion (5.2%)
●くろまるOf this amount, recovery and
reconstruction expenses were
53円.7 billion (2.1%)
●くろまるOf this amount, grants to measures
for earthquake disaster reconstruction were
466円.6 billion (18.5%)
◆だいやまーくLocal bonds 224円.9 billion (8.9%)
◆だいやまーくPrefectural disbursements
402円.1 billion (16.0%)
◆だいやまーくGeneral revenue resources 286円.6 billion (11.4%)
●くろまるOf this amount, earthquake disaster reconstruction
allocation tax was 240円.3 billion (9.5%)
◆だいやまーくOther revenue resources
790円.1 billion
(31.4%)08Local Public Finance, 2016 –Illustrated–
953.9 1.9
431.9
Revenues
3 Revenue Trends
The ratio of general revenue resources turned upward in FY2010, but declined again in FY2012. There was a year on year increase in
FY2014.
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
FY2004
FY2014
FY2010
FY2011
FY2012
0 100兆円
FY2013
97円.5 trillion
16円.2 trillion
(16.7%)
13円.0 trillion
(13.3%)
14円.3 trillion
(14.7%)
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%)
[61円.1 trillion(62.6%)]
93円.4 trillion
15円.7 trillion
(17.0%)
12円.4 trillion
(13.2%)
12円.5 trillion
(13.3%)
52円.8 trillion (56.5%)
52円.8 trillion (56.5%)
33円.5 trillion
(35.9%)
17円.0 trillion
(18.2%)
1円.2 trillion (1.2%) 1円.1 trillion (1.2%)
[56円.6 trillion (60.6%)]
3円.8 trillion (4.0%)
17円.8 trillion
(17.4%)
11円.5 trillion
(11.3%)
15円.5 trillion
(15.2%)
57円.3 trillion (56.1%)
57円.3 trillion (56.1%)
36円.8 trillion
(36.0%)
17円.4 trillion
(17.1%)
2円.9 trillion (2.9%) 0円.1 trillion (0.1%)
[62円.7 trillion (61.5%)]
5円.5 trillion (5.4%)
7円.1 trillion(7.3%)
[ ] shows general revenue resources + bond for temporary substitution for local allocation tax.
100円.1 trillion
101円.1 trillion
102円.1 trillion
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%)
2円.6 trillion (2.5%)
[61円.7 trillion (61.0%)]
[61円.3 trillion(61.3%)]
0円.1 trillion (0.1%) 6円.0 trillion (6.0%)
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.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
09 White Paper on Local Public Finance, 20164 Ratio of National Taxes and
Local Taxes
The total of taxes collected as national and local taxes amounted to
94,634円.7 billion. Of this amount, national and local taxes accounted
for 61.1% and 38.9% respectively.
Composition of Revenue from Prefectural Taxes (FY2014 settlement)
Composition of Revenue from Municipal Taxes (FY2014 settlement)
5 Local Taxes
Local taxes consist of prefectural taxes and municipal taxes.
◆だいやまーくPrefectural inhabitant tax
6,177円.4 billion (39.4%)
Total
15,683円.5 billion
◆だいやまーくEnterprise tax
3,203円.2 billion (20.4%)
◆だいやまーくOther taxes 91円.4 billion (0.5%)
◆だいやまーくAutomobile acquisition tax 86円.3 billion (0.6%)
◆だいやまーくPrefectural tobacco tax
155円.3 billion (1.0%)
◆だいやまーくReal estate acquisition tax
371円.7 billion (2.4%)
◆だいやまーくLight oil delivery tax
935円.6 billion (6.0%)
◆だいやまーくAutomobile tax
1,556円.2 billion (9.9%)
◆だいやまーくLocal consumption tax
3,106円.4 billion (19.8%)
●くろまるIndividual
5,102円.5 billion (32.5%)
●くろまるOn interest paid
112円.4 billion (0.7%)
●くろまるCorporate
962円.6 billion (6.1%)
●くろまるCorporate 3,016円.8 billion (19.2%)
●くろまるIndividual 186円.4 billion (1.2%)
Total
21,102円.0 billion
◆だいやまーくFixed asset tax
8,768円.6 billion (41.6%)
◆だいやまーくCity planning tax
1,243円.9 billion (5.9%)
◆だいやまーくMunicipal tobacco tax
950円.2 billion (4.5%)
◆だいやまーくOther taxes
579円.9 billion (2.7%)
●くろまるCorporate
2,445円.1 billion (11.6%)
◆だいやまーくMunicipal inhabitant tax
9,559円.4 billion (45.3%)
●くろまるIndividual
7,114円.3 billion (33.7%)
Total amount of
taxes
94,634円.7 billion
◆だいやまーく地方税
36兆7,855億円
(38.9%) ◆だいやまーくLocal taxes
36,785円.5 billion
(38.9%)
●くろまるPrefectural taxes
15,683円.5 billion
(16.6%)
●くろまるMunicipal taxes
21,102円.0 billion (22.3%)
◆だいやまーくNational taxes
57,849円.2 billion
(61.1%)
Note : 
Municipal taxes collected by the Tokyo Metropolitan Government are included in
municipal tax revenue figures, but not included in prefectural tax revenue figures.10Local Public Finance, 2016 –Illustrated–
Revenues
Prefectural tax revenues had been on a downward trend since FY2008, but have increased for three consecutive years since they turned
upward in FY2012.
Note : Municipal tax revenue figures include municipal taxes collected by the Tokyo Metropolitan Government.
Municipal tax revenues had remained at almost the same level since FY2009, but increased 2.4% year on year in FY2014.
Trends in Prefectural Tax Revenues
Trends in Municipal Tax Revenues02468101214161820229.18.78.77.7 6.96.76.85.52.12.02.02.28.69.09.08.80.90.90.80.91.21.31.31.20.50.50.50.520.39.27.02.28.71.01.20.520.620.420.39.67.12.48.81.01.20.521円.1 trillion19.1(trillion yen)
Fixed asset tax Other taxes
Municipal tobacco tax City planning tax
Corporate
Individual
Municipal inhabitant tax
FY2014
FY2010 FY2011 FY2012 FY2013
FY200402468101214161820(trillion yen)4.74.5
4.6 5.12.30.80.80.81.00.10.10.20.92.42.22.33.04.12.62.62.63.12.61.61.61.61.61.70.90.90.90.91.15.62.55.42.45.52.46.23.20.10.04.30.33.414.113.814.015円.7 trillion14.50.10.20.30.10.20.30.20.10.30.10.20.30.20.35.00.80.12.72.61.60.95.92.914.80.10.20.20.20.40.20.30.20.20.40.40.10.50.5FY2014
FY2010 FY2011 FY2012 FY2013
FY2004
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
Individual0.211 White Paper on Local Public Finance, 2016
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.
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 taxes and also exclude overassessment and discretionary taxes, etc.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, 2015.
Index of Per Capita Revenue in Local Tax Revenue (with national average as 100)300250200150100500200150100500 200150100500 200150100500 20015010050082.870.275.691.168.974.987.192.398.495.789.695.0
166.5
106.787.593.295.296.289.487.087.7104.8
121.496.293.393.0103.994.874.676.972.274.789.793.485.285.187.878.369.987.676.468.571.877.869.869.665.1
100.079.263.369.185.462.370.077.391.391.286.0
106.7
111.3
162.8
129.576.789.689.586.782.982.687.698.8
115.092.393.594.094.799.891.674.269.572.883.992.081.375.484.172.069.884.569.268.469.270.364.165.260.4
100.063.653.364.893.554.558.391.179.092.5103.661.268.0
246.080.779.885.693.990.686.976.068.7
104.7
156.386.690.282.0116.471.340.155.957.567.376.388.176.797.295.071.253.479.469.852.355.860.152.449.451.6
100.0
Individual inhabitant tax Two corporate taxes
Local consumption tax
(post settlement)
FY2014
settlement
amount
Local taxes total Fixed asset tax
103.898.394.8
101.997.594.195.893.899.796.281.699.1
129.792.2100.997.0101.7
100.4
100.0
101.893.7103.5
102.998.683.4
100.5
108.393.977.186.498.292.797.196.188.990.3100.288.494.7
101.291.792.195.098.893.289.775.0100.076.274.275.481.370.875.283.295.1
101.598.388.691.6157.6
104.895.997.593.6110.395.491.392.1109.6
116.8
101.799.495.5
105.799.871.082.075.478.994.494.191.189.186.191.872.687.179.867.872.985.074.375.780.2
100.0
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
11円.8trillion
Max/Min 2.7
5円.8trillion
Max/Min 6.1
3円.1trillion
Max/Min 1.7
36円.0trillion
Max/Min 2.6
8円.7trillion
Max/Min 2.312Local Public Finance, 2016 –Illustrated–
Revenues
6 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 (in FY2014 32% for Income tax and Liquor tax, 34% for Corporate
tax, 22.3% for Consumption tax, 25% for Tobacco tax, and the total amount of Local corporate tax).
The total amount of the Local allocation tax in FY2014 was 17,431円.4 billion, down 0.9% 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.
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
Small cities
Midsize cities Towns and villages
(population of 10,000 or more)
Towns and villages
(population of Less than 10,000)60(%)
Local taxes Local transfer tax, etc. Special local grants Local allocation tax0204053.838.72.412.655.627.23.624.754.324.83.625.854.312.54.337.40.2
0.1 0.10.013 White Paper on Local Public Finance, 2016
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 administrative expenses, and Civil engineering work expenses account for the largest amounts in that order.
General administrative expenses : Expenses for general administration, financial management, accounting administration, etc.
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.
Educational 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 (FY2014 settlement)
Net total
98,522円.8 billion
◆だいやまーくCivil engineering work expenses
12,050円.5 billion (12.2%)
◆だいやまーくGeneral administrative expenses
9,870円.0 billion (10.0%)
◆だいやまーくSanitation expenses
6,143円.4 billion (6.2%)
◆だいやまーくAgriculture, forestry and
shery expenses
3,348円.6 billion (3.4%)
◆だいやまーくOther expenses
7,126円.3 billion (7.3%)
◆だいやまーくCommerce and industry expenses
5,509円.5 billion (5.6%)
◆だいやまーくPublic welfare expenses
24,450円.9 billion (24.8%)
◆だいやまーくEducational expenses
16,658円.1 billion (16.9%)
◆だいやまーくDebt service
13,365円.5 billion (13.6%)
Prefectures
total
50,215円.4 billion
Prefectures
total
50,215円.4 billion
Municipalities
total
56,049円.4 billion
◆だいやまーくGeneral
administrative
expenses
3,479円.0 billion (6.9%)
◆だいやまーくSanitation
expenses
1,673円.5 billion
(3.3%)
◆だいやまーくCommerce and
industry expenses
3,738円.0 billion
(7.4%)
◆だいやまーくPublic welfare
expenses
7,601円.8 billion
(15.1%)
◆だいやまーくEducational expenses
10,916円.9 billion
(21.7%)
◆だいやまーくDebt service
7,485円.9 billion
(14.9%)
◆だいやまーくCivil engineering work expenses
5,528円.6 billion (11.0%)
◆だいやまーくAgriculture, forestry and
shery expenses
2,446円.9 billion (4.9%)
◆だいやまーくOther expenses
7,344円.8 billion (14.8%)
◆だいやまーくCivil engineering
work expenses
6,708円.2 billion (12.0%)
◆だいやまーくGeneral
administrative
expenses
6,962円.8 billion
(12.4%) ◆だいやまーくEducational expenses
5,830円.2 billion
(10.4%)
◆だいやまーくDebt service
5,925円.6 billion (10.6%)
◆だいやまーくPublic welfare expenses
19,809円.3 billion (35.3%)
◆だいやまーくSanitation
expenses
4,654円.5 billion
(8.3%)
◆だいやまーくCommerce and
industry expenses
1,817円.2 billion (3.2%)
◆だいやまーくAgriculture, forestry and
shery expenses
1,334円.4 billion (2.4%)
◆だいやまーくOther expenses 3,007円.2 billion (5.4%)14Local Public Finance, 2016 –Illustrated–
Expenditures
2 ExpendituresinRegularPortionandGreatEastJapanEarthquakePortion(ExpensesClassifiedbyPurpose)
Net total
Prefectures
Municipalities
Great East Japan
Earthquake portion
4,011円.6 billion
◆だいやまーくGeneral administrative
expenses
8,862円.1 billion (9.4%)
◆だいやまーくCommerce and
industry expenses
5,134円.6 billion (5.4%)
◆だいやまーくSanitation
expenses
6,060円.8 billion
(6.4%)
◆だいやまーくAgriculture, forestry
and shery expenses
3,118円.7 billion
(3.3%)
◆だいやまーくRecovery and
reconstruction expenses
315円.2 billion (0.3%)
◆だいやまーくOther expenses 6,269円.2 billion (6.7%)
Regular portion
94,511円.2 billion
◆だいやまーくEducational expenses
16,309円.5 billion
(17.3%)
◆だいやまーくDebt service
13,359円.1 billion
(14.1%)
◆だいやまーくCivil engineering work expenses
11,197円.1 billion (11.8%)wereessesnses
d shery expenses
tion expenses
◆だいやまーくSanitation expenses
82円.6 billion (2.0%)
◆だいやまーくCommerce and
industry expenses
375円.0 billion (9.3%)
◆だいやまーくGeneral administrative expenses
1,007円.8 billion (25.1%)
◆だいやまーくAgriculture, forestry
and shery expenses
229円.9 billion (5.7%)
◆だいやまーくRecovery and
reconstruction expenses
419円.7 billion (10.5%)
◆だいやまーくOther expenses
122円.1 billion (3.1%)
◆だいやまーくPublic welfare expenses
23,884円.9 billion (25.3%)
●くろまるOf this amount,
disaster relief expenses were
16円.5 billion (0.0%)
◆だいやまーくDebt service
6円.4 billion
(0.2%)
◆だいやまーくCivil engineering
work expenses
853円.4 billion (21.3%)
◆だいやまーくPublic welfare expenses
566円.0 billion (14.1%)
●くろまるOf this amount,
disaster relief expenses were
539円.1 billion (13.4%)
◆だいやまーくEducational expenses
348円.7 billion (8.7%)
◆だいやまーくPublic welfare expenses
7,064円.9 billion (14.7%)
●くろまるOf this amount,
disaster relief expenses were
7円.3 billion (0.0%)
Great East Japan
Earthquake portion
2,231円.0 billion
Regular portion
47,984円.4 billion
◆だいやまーくRecovery and
reconstruction expenses
196円.5 billion (0.4%)
◆だいやまーくAgriculture, forestry
and shery expenses
2,286円.9 billion
(4.8%)
◆だいやまーくCommerce and
industry expenses
3,372円.3 billion
(7.0%)
◆だいやまーくRecovery and
reconstruction expenses
289円.2 billion (13.0%)
◆だいやまーくAgriculture, forestry
and shery expenses
159円.9 billion (7.2%)
◆だいやまーくSanitation
expenses
68円.4 billion
(3.0%)
◆だいやまーくCommerce and
industry expenses
365円.7 billion (16.4%)
◆だいやまーくGeneral administrative expenses
389円.2 billion (17.4%)
◆だいやまーくGeneral administrative expenses
3,089円.8 billion (6.4%)
◆だいやまーくSanitation
expenses
1,605円.1 billion
(3.3%)
◆だいやまーくOther expenses 6,776円.5 billion (14.2%) ◆だいやまーくOther expenses 82円.7 billion (3.7%)
◆だいやまーくEducational expenses
10,869円.9 billion
(22.7%)
◆だいやまーくDebt service
7,484円.3 billion (15.6%)
◆だいやまーくCivil engineering work expenses
5,238円.2 billion (10.9%)
◆だいやまーくPublic welfare expenses
536円.9 billion (24.1%)
●くろまるOf this amount,
disaster relief expenses were
512円.6 billion (23.0%)
◆だいやまーくDebt service
1円.7 billion (0.1%)
◆だいやまーくCivil engineering work
expenses
290円.3 billion (13.0%)
◆だいやまーくEducational expenses
47円.0 billion (2.1%)
Regular portion
53,777円.3 billion
◆だいやまーくPublic welfare expenses
19,451円.8 billion (36.2%)
●くろまるOf this amount,
disaster relief expenses were
9円.0 billion (0.0%)
◆だいやまーくOther expenses 2,632円.9 billion (4.8%)
◆だいやまーくRecovery and
reconstruction expenses
159円.9 billion (0.3%)
◆だいやまーくSanitation
expenses
4,606円.2 billion
(8.6%)
◆だいやまーくCommerce and
industry expenses
1,794円.7 billion (3.3%)
◆だいやまーくGeneral administrative expenses
6,330円.8 billion (11.8%)
◆だいやまーくAgriculture, forestry and
shery expenses
1,228円.5 billion
(2.3%)
◆だいやまーくPublic welfare expenses
357円.5 billion (15.7%)
●くろまるOf this amount,
disaster relief expenses were
342円.7 billion (15.1%)
◆だいやまーくOther expenses 73円.3 billion (3.2%)
◆だいやまーくRecovery and
reconstruction expenses
141円.1 billion (6.2%)
◆だいやまーくAgriculture, forestry and
shery expenses
105円.9 billion
(4.7%)
◆だいやまーくSanitation
expenses
48円.3 billion
(2.1%)
◆だいやまーくCommerce and
industry expenses
22円.5 billion (1.0%)
◆だいやまーくGeneral administrative expenses
632円.0 billion (27.8%)
◆だいやまーくEducational expenses
5,518円.8 billion (10.3%)
◆だいやまーくDebt service
5,919円.5 billion (11.0%)
◆だいやまーくEducational
expenses
311円.4 billion
(13.7%)
◆だいやまーくDebt service
6円.0 billion (0.3%)
◆だいやまーくCivil engineering work expenses
574円.0 billion (25.3%)
◆だいやまーくCivil engineering work expenses
6,134円.2 billion (11.4%)
Great East Japan
Earthquake portion
2,272円.0 billion
15 White Paper on Local Public Finance, 2016
* Indices use FY2004 as base year of 100
Trends in Expenditures Classified by Purpose (Net total)
Trends in Breakdown of Public Welfare Expenses by Purpose
3 Breakdown of Expenses Classified by Purpose
While Civil engineering work expenses and Agriculture, forestry and fishery expenses were on a downward trend, Public welfare expenses
Significantly rose.051015202523.21.03.85.35.77.423.20.73.95.65.77.323.51.04.05.65.77.219.83.35.35.75.521.33.65.15.57.117.82.94.84.85.317.02.94.84.35.116.32.94.44.14.915.12.73.83.94.615.72.84.24.04.70.00.00.00.00.00.00.0
\ trillion
24円.5 trillion0.64.06.25.97.7Disaster relief
Public assistance
Social welfare Elderly welfare Child welfare
(trillion yen)
FY2014
FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY20136080100120140160180110162106791127799102(%)
FY2014
FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013
Sanitation expenses
Education expenses
Agriculture, forestry and shery expenses
Debt service
General administrative expenses
Commerce and industry expenses
Public welfare expenses
Civil engineering work expenses16Local Public Finance, 2016 –Illustrated–
Expenditures
Breakdown of Public Welfare Expenses by Purpose
Breakdown of Educational Expenses by Purpose
Breakdown of Civil Engineering Work Expenses by Purpose
Disaster relief
Public assistance
Social welfare
Elderly welfare
Child welfare
555円.5 billion (2.3%)
4,015円.8 billion (16.4%)
6,231円.2 billion (25.5%)
5,903円.3 billion (24.1%)
7,745円.1 billion (31.7%)
520円.0 billion (6.8%)
271円.7 billion (3.6%)
2,331円.6 billion (30.7%)
2,931円.5 billion (38.6%)
1,547円.1 billion (20.4%)
351円.7 billion (1.8%)
3,798円.5 billion (19.2%)
4,981円.5 billion (25.1%)
3,604円.8 billion (18.2%)
7,072円.8 billion (35.7%)
Net total
24,450円.9 billion
Prefectures
7,601円.8 billion
Municipalities
19,809円.3 billion
Other
Social education
Health and
physical education
Senior high school
Educational general
affairs
Junior high school
Elementary school
4,824円.0 billion (29.0%)
4,824円.0 billion (29.0%)
2,843円.0 billion (17.1%)
2,843円.0 billion (17.1%)
2,246円.7 billion (13.5%)
2,246円.7 billion (13.5%)
2,844円.8 billion (17.1%)
2,844円.8 billion (17.1%)
1,368円.0 billion (8.2%)
1,368円.0 billion (8.2%)
1,220円.2 billion (7.3%)
1,220円.2 billion (7.3%)
3,396円.6 billion (31.1%)
3,396円.6 billion (31.1%)
1,432円.9 billion (24.6%)
1,432円.9 billion (24.6%)
827円.7 billion (14.2%)
827円.7 billion (14.2%)
1,056円.3 billion (18.1%)
1,056円.3 billion (18.1%)
1,249円.4 billion (21.4%)
1,249円.4 billion (21.4%)
788円.7 billion (13.5%)
788円.7 billion (13.5%)
160円.1 billion (2.7%)
160円.1 billion (2.7%)
315円.1 billion (5.5%)
315円.1 billion (5.5%)
1,003円.9 billion (9.2%)
1,003円.9 billion (9.2%)
1,311円.4 billion (7.8%)
1,311円.4 billion (7.8%)
2,021円.4 billion (18.5%)
2,021円.4 billion (18.5%)
2,094円.1 billion (19.2%)
2,094円.1 billion (19.2%)
2,091円.0 billion (19.2%)
2,091円.0 billion (19.2%)
177円.6 billion (1.6%)
177円.6 billion (1.6%)
132円.3 billion (1.2%)
132円.3 billion (1.2%)
Net total
16,658円.1 billion
Prefectures
10,916円.9 billion
Municipalities
5,830円.2 billion
Other
Harbors
Housing
Rivers and coasts
Road and bridges
Urban planning
2,293円.9 billion (41.5%)
2,293円.9 billion (41.5%)
1,791円.6 billion (26.7%)
1,791円.6 billion (26.7%)
1,146円.7 billion (20.7%)
1,146円.7 billion (20.7%)
941円.6 billion (17.0%)
941円.6 billion (17.0%)
3,369円.6 billion (50.2%)
3,369円.6 billion (50.2%)
670円.4 billion (5.5%) 326円.7 billion (6.0%)
439円.3 billion (3.6%)
178円.1 billion (2.7%)
163円.2 billion (2.4%)
1,309円.9 billion (10.9%)
1,309円.9 billion (10.9%)
4,044円.1 billion (33.6%)
4,044円.1 billion (33.6%)
4,252円.1 billion (35.3%)
4,252円.1 billion (35.3%)
1,334円.7 billion (11.1%)
1,334円.7 billion (11.1%) 843円.8 billion (12.6%)
843円.8 billion (12.6%)
297円.6 billion (5.4%)
361円.9 billion (5.4%)
522円.1 billion (9.4%)
522円.1 billion (9.4%)土Breakdown of Civil E1兆4兆1兆4都1兆2兆市3兆Net total
12,050円.5 billion
Prefectures
5,528円.6 billion
Municipalities
6,708円.2 billion
17 White Paper on Local Public Finance, 2016
4 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?
Composition of Expenditures Classified by Type (FY2014 settlement)
Prefectures
total
50,215円.4 billion
Municipalities
total
56,049円.4 billion
●くろまるPersonnel expenses
22,524円.3 billion (22.9%)
●くろまるOrdinary construction work expenses
14,778円.6 billion (15.0%)
●くろまるSocial assistance expenses
12,914円.9 billion (13.1%)
●くろまるDebt service
13,336円.8 billion (13.5%)
●くろまるLatter-stage elderly healthcare accounts
1,472円.4 billion (1.5%)
◆だいやまーくOther
6,457円.1 billion (6.5%)
◆だいやまーくSubsidizing expenses
9,310円.6 billion (9.5%)
◆だいやまーくReserves
4,005円.9 billion (4.1%)
◆だいやまーくTransfers to other accounts
5,382円.8 billion (5.5%)
◆だいやまーくGoods expenses
9,078円.7 billion (9.2%)
●くろまるNational health insurance accounts
1,260円.2 billion (1.3%)
●くろまるElderly nursing care insurance accounts
1,410円.6 billion (1.4%)
●くろまるOrdinary construction
work expenses
8,293円.7 billion (14.8%)
●くろまるNon-subsidized public works
expenses
4,172円.1 billion (7.4%)
●くろまるPersonnel expenses
8,878円.2 billion
(15.8%)
●くろまるSocial assistance
expenses
11,876円.8 billion
(21.2%)
●くろまるDebt service
5,918円.6 billion
(10.6%)
◆だいやまーくOther
2,359円.5 billion (4.3%)
◆だいやまーくSubsidizing
expenses
3,784円.9 billion
(6.8%)
◆だいやまーくReserves
2,040円.9 billion (3.6%)
◆だいやまーくTransfers to other accounts
5,178円.1 billion (9.2%)
◆だいやまーくGoods expenses
7,419円.7 billion
(13.2%)
●くろまるOrdinary construction
work expenses
7,183円.8 billion (14.3%)
●くろまるPersonnel expenses
13,646円.2 billion
(27.2%)
●くろまるSocial assistance
expenses
1,038円.1 billion
(2.1%)
●くろまるDebt service
7,464円.0 billion
(14.9%)
◆だいやまーくOther 4,132円.5 billion (8.2%)
◆だいやまーくSubsidizing
expenses
12,436円.6 billion
(24.8%)
◆だいやまーくReserves
1,965円.0 billion
(3.9%)
◆だいやまーくTransfers to other accounts 204円.7 billion (0.4%)
◆だいやまーくGoods expenses
1,659円.0 billion
(3.3%)
Net total
98,522円.8 billion
Mandatory expenses
48,776円.0 billion (49.5%)
Investment expenses
15,511円.7 billion (15.7%)
Mandatory expenses
26,673円.6 billion
(47.6%)
Investment expenses
8,592円.7 billion (15.3%)
Investment expenses
7,669円.3 billion (15.3%)
●くろまるSubsidized public works expenses
3,945円.2 billion (7.0%)
●くろまるSubsidized public works expenses
7,741円.6 billion (7.9%)
●くろまるNon-subsidized public works expenses
6,336円.4 billion (6.4%)
Mandatory expense
22,148円.3 billion
(44.1%)
●くろまるSubsidized public works expenses
4,122円.7 billion (8.2%)
●くろまるNon-subsidized public works expenses
2,425円.6 billion (4.8%)18Local Public Finance, 2016 –Illustrated–
Expenditures
5 Expenditures in Regular Portion and Great East Japan Earthquake Portion (Expenses Classified byType)
Municipalities
Prefectures
Net total
Great East Japan
Earthquake portion
4,011円.6 billion
Regular portion
94,511円.2 billion
◆だいやまーくOther
11,517円.3 billion (12.1%)
◆だいやまーくReserves
2,886円.1 billion
(3.1%)
◆だいやまーくSubsidizing
expenses
9,148円.2 billion
(9.7%)
◆だいやまーくGoods expenses
8,620円.0 billion (9.1%)
●くろまるOrdinary construction work expenses 13,299円.3 billion (14.1%)
●くろまるDisaster recovery project expenses 315円.0 billion (0.3%)
●くろまるPersonnel expenses
22,486円.1 billion
(23.8%)
●くろまるSocial assistance
expenses
12,908円.7 billion
(13.7%)
●くろまるDebt service
13,330円.4 billion
(14.1%)
◆だいやまーくMandatory expenses
48,725円.2 billion (51.6%)
◆だいやまーくOther
322円.5 billion (8.1%)
◆だいやまーくReserves
1,119円.9 billion (27.9%)
◆だいやまーくSubsidizing
expenses
162円.4 billion (4.0%)
◆だいやまーくGoods expenses
458円.7 billion (11.4%)
●くろまるOrdinary construction
work expenses
1,479円.3 billion
(36.9%)
●くろまるDisaster recovery
project expenses
418円.0 billion
(10.4%)
◆だいやまーくMandatory expenses
50円.8 billion (1.3%)
●くろまるPersonnel expenses 38円.3 billion (1.0%)
●くろまるSocial assistance expenses
6円.2 billion (0.2%)
●くろまるDebt service 6円.4 billion (0.2%)
◆だいやまーくInvestment expenses
13,614円.4 billion (14.4%)
◆だいやまーくInvestment expenses
1,897円.3 billion
(47.3%)
Great East Japan
Earthquake portion
2,231円.0 billion
Regular portion
47,984円.4 billion
◆だいやまーくOther
4,057円.6 billion (8.4%)
◆だいやまーくReserves
1,464円.3 billion
(3.1%)
◆だいやまーくSubsidizing
expenses
11,909円.0 billion
(24.8%)
◆だいやまーくGoods expenses
1,570円.4 billion (3.3%) ●くろまるOrdinary construction work expenses 6,662円.8 billion (13.9%)
●くろまるDisaster recovery project expenses 196円.4 billion (0.4%)
◆だいやまーくInvestment expenses
6,859円.1 billion (14.3%)
●くろまるPersonnel expenses
13,624円.9 billion
(28.4%)
●くろまるSocial assistance
expenses
1,036円.8 billion (2.2%)
●くろまるDebt service
7,462円.3 billion (15.6%)
◆だいやまーくMandatory expenses
22,124円.0 billion (46.1%)
◆だいやまーくOther
279円.6 billion (12.6%)
◆だいやまーくReserves
500円.7 billion
(22.4%)
◆だいやまーくSubsidizing
expenses
527円.6 billion
(23.6%)
◆だいやまーくGoods expenses
88円.6 billion (4.0%)
●くろまるOrdinary construction
work expenses
521円.0 billion
(23.4%)
●くろまるDisaster recovery
project expenses
289円.2 billion
(13.0%)
●くろまるPersonnel expenses 21円.3 billion (1.0%)
●くろまるSocial assistance expenses 1円.3 billion (0.1%)
●くろまるDebt service 1円.7 billion (0.1%)
◆だいやまーくMandatory expenses
24円.3 billion (1.1%)
◆だいやまーくInvestment
expenses
810円.2 billion
(36.3%)
Regular portion
53,777円.3 billion
◆だいやまーくOther
7,492円.5 billion (14.0%)
◆だいやまーくReserves
1,421円.8 billion
(2.6%)
◆だいやまーくSubsidizing
expenses
3,713円.0 billion
(6.9%)
◆だいやまーくGoods expenses
7,049円.6 billion
(13.1%)
●くろまるOrdinary construction work expenses 7,294円.8 billion (13.6%)
●くろまるDisaster recovery project expenses 159円.8 billion (0.3%)
●くろまるPersonnel expenses
8,861円.2 billion (16.5%)
●くろまるSocial assistance
expenses
11,871円.9 billion
(22.1%)
●くろまるDebt service
5,912円.6 billion (11.0%)
◆だいやまーくMandatory expenses
26,645円.7 billion (49.5%)
◆だいやまーくOther
45円.0 billion (2.0%)
◆だいやまーくSubsidizing
expenses
71円.9 billion (3.2%)
◆だいやまーくGoods expenses
370円.1 billion (16.3%)
●くろまるOrdinary construction
work expenses
998円.9 billion
(44.0%)
●くろまるDisaster recovery
project expenses
139円.1 billion
(6.1%)
◆だいやまーくInvestment expenses
1,138円.0 billion
(50.1%)
●くろまるPersonnel expenses 17円.0 billion (0.7%)
●くろまるSocial assistance expenses
4円.9 billion (0.2%)
●くろまるDebt service 6円.0 billion (0.3%)
◆だいやまーくMandatory expenses
27円.9 billion (1.2%)
◆だいやまーくReserves
619円.1 billion (27.2%)
◆だいやまーくInvestment expenses
7,454円.7 billion (13.9%)
Great East Japan
Earthquake portion
2,272円.0 billion
19 White Paper on Local Public Finance, 2016
*Indices use FY2004 as base year of 100
6 Breakdown of Expenses Classified by Type
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 Purpose92173102881151361176080100120140160180
FY2014
FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013(%)Personnel expenses Social assistance expenses Debt service Investment expenses Transfers to other accounts
Goods expenses Subsidizing expenses
7.5 7.7 7.8
8.2 8.59.111.2
12.0 12.0 12.202468101214
\ trillion
12円.9 trillion
Social welfare Elderly welfare Child welfare Public assistance Other
(trillion yen)
FY2014
FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013
1.4 1.4 1.4 1.6 1.8 2.0 2.1 2.3 2.5
0.3 0.3 0.3 0.2 0.2 0.2 0.2 0.2 0.2
2.7 2.8 3.0 3.2 3.3 3.35.05.2 5.0
2.6 2.6 2.72.72.73.13.4
3.5 3.6
0.5 0.6 0.40.50.50.50.5
0.8 0.72.70.25.03.70.63.10.25.33.70.620Local Public Finance, 2016 –Illustrated–
Expenditures
Trends in Breakdown of Subsidizing Expenses by Purpose
Trends in Breakdown of Transfers to Other Accounts
Personal expenses for FY2014 increased year on year due mainly to the completion of 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 Item
22,524.3
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
13,646.2
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
8,878.2
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
27,000
26,000
25,000
24,000
23,000
16,000
15,000
11,000
10,000
9,000
14,0000FY2014
FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013
Net total Prefectures Municipalities
(billion yen)1000204060800.0%9円.4 billion0.0%Net total
22,524円.3 billion
Prefectures
13,646円.2 billion
Municipalities
8,878円.2 billion0.0%1円.1 billion0.0%0.1%
8円.3 billion0.1%46.9%
10,562円.5 billion
46.9%
23.4%
5,260円.5 billion
23.4%
70.3%
15,832円.4 billion
70.3%5.5%1,243円.0 billion 5.5%2.9%390円.2 billion2.9%9.4%
2,111円.6 billion 9.4%
14.8%
3,337円.3 billion 14.8%
15.1%
2,062円.3 billion 15.1%8.7%1,193円.3 billion 8.7%9.6%852円.8 billion 9.6%
14.4%
1,275円.1 billion 14.4%
10.3%
918円.3 billion 10.3%
49.1%
6,695円.7 billion
49.1%
43.6%
3,866円.9 billion
43.6%
73.3%
10,000円.4 billion
73.3%
65.7%
5,832円.0 billion
65.7%
24.2%
3,303円.6 billion
24.2%
22.0%
1,956円.8 billion
22.0%
Employee salaries Base salaries Other allowances Temporary employee salaries
Retirement allowances Local public servant, mutual-aid associations, etc. Other(%)21 White Paper on Local Public Finance, 2016
Trends in Breakdown of Transfers to Other Accounts
Trends in Breakdown of Ordinary Construction Work Expenses Classified by Type (Net total)
Breakdown of Ordinary Construction Work Expenses by Purpose
Ordinary construction work expenses increased year on year due to an increase in Non-subsidized public works, expenses related to
recovery and reconstruction work, etc.
Subsidized public works Non-subsidized public works Obligatory share of public works directly carried out by the national government
6.6 6.2 5.8 5.5 5.4 5.9 5.6 6.1 6.1
7.8 7.78.47.77.26.8 6.47.26.9 5.7 5.4
5.6 6.31.31.31.31.31.21.30.80.8 0.90.80.716.315.114.313.513.014.413.312.5 12.414.214円.8 trillion024681012141618
(trillion yen)
FY2014
FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013100020406080
925円.2 billion (6.3%) 353円.3 billion (4.9%) 674円.0 billion (8.1%)
702円.3 billion (4.8%) 288円.8 billion (4.0%)
540円.8 billion (6.5%)
791円.9 billion (5.4%)
212円.8 billion
(3.0%)
633円.6 billion (7.6%)
1,653円.2 billion (11.2%) 1,389円.8 billion
(19.3%)
511円.9 billion (6.2%)
7,357円.8 billion
(49.8%)
4,119円.8 billion
(57.3%)
3,363円.1 billion
(40.6%)
2,282円.4 billion
(15.4%)
423円.4 billion (5.9%)
1,875円.6 billion
(22.6%)
395円.9 billion (5.6%) 694円.7 billion (8.4%)
Net total
14,778円.6 billion
Prefectures
7,183円.8 billion
Municipalities
8,293円.7 billion
General administrative expenses Public welfare expenses Sanitation expenses Agriculture, forestry and shery expenses
Civil engineering work expenses Education expenses Other expenses(%)1,065円.8 billion (7.1%)22Local Public Finance, 2016 –Illustrated–
Expenditures10.710.7103579111.0 1.0 0.9 0.8 1.02.81.4
0.7 0.81.72.1 2.5 2.73.03.33.33.5 3.61.01.0
1.0 0.91.01.11.11.11.10.40.30.3 0.30.30.30.40.30.40.50.50.4 0.40.50.80.50.60.60.8
0.9 0.8 0.80.80.90.91.01.01.1
1.1 1.1 1.21.21.21.41.41.40.3
0.4 0.3 0.30.30.30.30.30.36.86.87.2
7.2 7.4
7.4 7.57.58.18.19.49.48.98.99.29.21.03.61.10.50.61.01.40.39.59.50.73.71.10.40.50.91.50.59.3 trillion
9円.3 trillion
(trillion yen)
General administrative expenses
Commerce and industry expenses
Public welfare expenses
Civil engineering work expenses
Sanitation expenses
Education expenses
Agriculture, forestry and shery expenses
Other
FY2014
FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013
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 1.1 1.1 1.2 1.2 1.2
0.7 0.8 0.8 0.90.10.1 0.0
0.0 0.00.01.1 1.2 1.3 1.3 1.40.91.0 1.0 1.0
1.1 1.1
1.2 1.2 1.30.10.10.10.10.00.00.00.00.00.00.10.10.00.00.10.10.00.00.10.10.00.00.00.00.00.00.00.00.00.00.00.00.00.00.10.1
4.6 4.6 4.6 4.6
4.8 4.9 5.0 5.15.21.21.21.41.30.00.00.10.15.101234561.21.31.51.40.00.00.00.05円.4 trillion
(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
FY2014
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
23 White Paper on Local Public Finance, 2016
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 the expenses 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 FY2014 Ordinary balance ratio rose 0.5 percentage
points year-on-year, to 92.1%, staying above 90% for the
eleventh consecutive year.
* Special wards and partial administrative associations, etc., are not included in total and municipalities.
Trends in the Ordinary Balance Ratio
Breakdown of the Ordinary Balance Ratio (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.
33.4 31.1
6.4 6.6
21.1 21.1
31.7 32.837.04.621.928.091.591.536.54.821.528.691.491.436.05.021.429.091.491.436.25.221.530.593.493.435.15.321.530.992.892.834.85.721.531.893.893.832.96.220.730.790.590.5 92.6
92.6 91.691.632.66.620.932.692.792.7010203040506070809010031.36.820.833.292.192.1
Personnel expenses Social assistance expenses Debt service Other
FY2014
FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2013
FY2012(%)90.3908010090.7 90.2
90.5 90.2 90.3
92.0 91.8 91.889.292.5 92.6 92.6
94.7 93.995.991.9
94.9 94.693.091.5 91.4 91.4
93.4 92.893.890.592.692.791.691.691.393.092.192.1(%)Prefectures
Total Municipalities
FY2014
FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2013
FY2012
FY201124Local Public Finance, 2016 –Illustrated–
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 measure the extent of the burden of the Debt service.
*Real debt service ratio : 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.
* 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 measure 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 Ratio13.512.8 13.013.513.9 13.712.311.811.210.5 9.99.212.8
12.3 12.1 12.0 11.811.313.58.610.913.18.010.4978101112131415(%)FY2007 FY2008 FY2009 FY2010 FY2011 FY2013 FY2014
FY2012
Prefectures Municipalities
Net total19.418.6 18.616.416.216.518.918.817.019.318.619.419.319.919.519.718.515.719.918.418.619.219.119.319.219.418.217.617.717.517.417.315.3201918171615
Prefectures Municipalities
Net total(%)FY2005
FY2004 FY2014
FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2013
FY2012
25 White Paper on Local Public Finance, 2016
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 Bonds
Outstanding local government borrowing amounted to approximately 146円 trillion at the end of FY2014, and has been increasing in recent
years with the growing issue of Bonds for the extraordinary finacial measures. The figure is 1.43 times larger than the total revenue and
about 2.55 times larger than the Total general revenue resources.
Note : Outstanding local government bonds 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 FY2014.
100.945.0145.9
145.9
127.7
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
144.740.6300609012015097.548.5146.0
146.0
(trillion yen)
Bonds for the extraordinary nancial measures Other local bonds
FY2005
FY2004 FY2014
FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2013
FY2012250200150100500
140.628.1201.5
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
201.433.3146.021.4200.5
200.533.1FY2005
FY2004 FY2014
FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2013
FY2012
(trillion yen)
Outstanding borrowing from special account for local allocation tax and transfer tax grants
Outstanding public enterprise bonds (included in ordinary accounts)
Outstanding local government bonds26Local Public Finance, 2016 –Illustrated–
Local Public Enterprises
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.
What is the status of local public enterprises?
1 Presence of Local Public Enterprises
Local public enterprises play a major role in improving the standard of living of residents.1001002090(%)
Water-supply business
(including small-scale
water supply business)
Sewerage business Transportation
business
(railways)
Transportation
business
(buses)
Hospitals
124.49 million
(99.5%)
Out of 125.10 million
Current water-supply
population
102.99 million
(91.3%)
Out of 112.75 million
Sewage disposal
population
3,198 million
(13.6%)
Out of 23,600 million
No. of passengers
per year
931 million
(20.7%)
Out of 4,500 million
No. of passengers
per year
188,000
(12.0%)
Out of 1,568,000
No. of hospital beds
27 White Paper on Local Public Finance, 2016
2 Number of Businesses Operated by Local Public Enterprises
8,662 businesses are operated by local public enterprises. By type of business, sewerage accounts for the largest ratio, followed, in order,
by water supply, hospitals, care services, and residential development.
3 Scale of Financial Settlement
The scale of total financial settlement is 18,778円.9 billion. By type of business, sewerage accounts for the largest ratio, followed, in order,
by hospitals, total water supply, residential development, and transportation.
◆だいやまーくHospitals
639 (7.4%)
◆だいやまーくResidential development
443 (5.1%)
◆だいやまーくOther
1,268 (14.6%)
◆だいやまーくCare services
577 (6.7%)
No. of
businesses
8,662
(End of FY2014)
◆だいやまーくWater supply business
2,097 (24.2%)
●くろまるWater supply business 1,348 (15.6%)
●くろまるSmall-scale water supply business
749 (8.6%)
◆だいやまーくSewerage business
3,638 (42.0%)
◆だいやまーくHospitals
5,068円.8 billion (27.0%)
◆だいやまーくTransportation
1,272円.6 billion (6.8%)
◆だいやまーくOther
1,200円.9 billion (6.4%)
◆だいやまーくResidential development
1,424円.9 billion (7.6%)
Scale of nancial
settlement
18,778円.9 billion
◆だいやまーくSewerage business
5,616円.9 billion (29.9%)
◆だいやまーくWater supply business
(including small-scale water supply)
4,194円.8 billion (22.3%)
(End of FY2014)28Local Public Finance, 2016 –Illustrated–
4 Financial Status
Local public enterprises had a deficit of 525円.2 billion due mainly to an increase in the total costs associated with the review of local public
enterprise accounting standards. By type of business, water supply, electricity, gas and sewages showed a surplus.
Trends in the Financial Status of Local Public Enterprises
Local Public Enterprises600400200△しろさんかく200
△しろさんかく400
△しろさんかく600
△しろさんかく800
△しろさんかく1,0000600500400300200100△しろさんかく400
△しろさんかく5000457.9 424.6
523.1
259.0
508.1
△しろさんかく525.2
FY2004 FY2014
FY2010 FY2011 FY2013
FY2012
FY2004 FY2014
FY2010 FY2011 FY2013
FY2012
(billion yen)
(billion yen)
Surplus
De cit
Total balance
Total surplus
464.0
Total de cit Total de cit
△しろさんかく3.7
Other 50.6
Sewage business 123.8
Electricity7.6Transportation 38.7
Industrial-use water 21.4
Water supply 220.2
(Including small-scale
water supply)
Total surplus
526.8
Other 72.1
Sewage business 126.4
Transportation 50.6
Industrial-use water 22.3
Water supply 237.2
(Including small-scale
water supply)
Other △しろさんかく6.1
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 0.9
Hospitals 0.9
△しろさんかく6.1
Total surplus
431.9
Total de cit
△しろさんかく7.3
Other 42.1
Sewage business 124.0
Transportation 26.3
Industrial-use water 22.8
Water supply 210.1
(Including small-scale
water supply)
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
Electricity 6.6
Electricity 6.6
Hospitals △しろさんかく42.9
Hospitals △しろさんかく42.9
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
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 surplus
469.0
Other 115.5
Sewage business 93.1
Electricity 9.9
Gas △しろさんかく5.3
Industrial-use water 19.4
Water supply 231.1
(Including small-scale
water supply)
Transportation △しろさんかく63.8
Hospitals △しろさんかく126.1
Other △しろさんかく14.8
Total de cit
△しろさんかく210.0
Total surplus
421.3
Other 18.4
Sewage business 197.9
Gas 6.6
Electricity 17.0
Industrial-use water △しろさんかく25.4
Transportation △しろさんかく112.6
Hospitals △しろさんかく485.2
Other △しろさんかく323.3
Water supply 181.4
(Including small-scale
water supply)
Total de cit △しろさんかく946.5
29 White Paper on Local Public Finance, 2016
Impact of Great East Japan Earthquake
1 Settlement of Disaster-Struck Organizations
1.Specified Disaster-Struck Prefectures
In FY2014, the total revenues of the nine specified disaster-struck prefectures amounted to 11,115円.5 billion, increasing by 45円.7 billion
year on year, or 0.4% (0.2% national increase). Total expenditures of the entities amounted to 10,577円.2 billion, rising by 72円.8 billion year
on year, or 0.7% (0.3% 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.
Revenues
Expenditures Classified by Purpose
Expenditures Classified by Type
FY2014
FY2013 11,069円.8 billion
11,115円.5 billion
Local taxes Local allocation tax Earthquake disaster reconstruction allocation tax National treasury disbursements Other
2,449円.9 billion
(22.1%)
2,004円.4 billion
(18.1%)
2,059円.4 billion
(18.6%)
4,556円.1 billion
(41.2%)
258円.9 billion (2.3%)
2,597円.6 billion
(23.4%)
2,000円.4 billion
(18.0%)
1,870円.7 billion
(16.8%)
4,646円.8 billion
(41.8%)
264円.8 billion (2.4%)
264円.8 billion (2.4%)
10,577円.2 billion
FY2013
FY2014
910円.4 billion
(8.6%)
1,687円.3 billion
(16.0%)
333円.6 billion (3.2%)
333円.6 billion (3.2%)
7,272円.6 billion
(68.7%)
511円.8 billion (4.8%)
511円.8 billion (4.8%)
373円.3 billion
(3.5%)
373円.3 billion
(3.5%)
10,504円.4 billion
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%)
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%)
799円.3 billion (7.6%)
10,504円.4 billion
FY2014
FY2013
10,577円.2 billion
Mandatory expenses Investment expenses Ordinary construction expenses Disaster recovery project expenses Other Reserves
4,812円.5 billion
(45.8%)
3,850円.6 billion
(36.7%)
1,841円.3 billion (17.5%)
1,392円.4 billion (13.3%) 448円.9 billion (4.3%)
891円.0 billion (8.5%)
4,495円.2 billion
(42.5%)
4,216円.0 billion
(39.9%)
1,866円.0 billion (17.6%)
1,532円.4 billion (14.5%)
1,532円.4 billion (14.5%) 333円.6 billion (3.2%)
333円.6 billion (3.2%) 766円.1 billion (7.2%)30Local Public Finance, 2016 –Illustrated–
Impact of Great East Japan Earthquake
2.Specified Disaster-Struck Municipalities
In FY2014, the total revenues of the 227 municipalities designated as specified disaster-struck municipalities amounted to 8,388円.6 billion,
increasing by 236円.0 billion year on year, or 2.9% (1.9% national increase). Total expenditures of the entities amounted to 7,855円.3 billion,
rising by 234円.1 billion year on year, or 3.1% (2.2% 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.)
Revenues
Expenditures Classified by Purpose
Expenditures Classified by Type
8,388円.6 billion
2,245円.3 billion
(26.8%)
1,255円.0 billion
(15.0%)
1,523円.7 billion
(18.2%)
3,364円.6 billion
(40.0%)
239円.8 billion (2.9%)
Local tax Local allocation tax Earthquake disaster reconstruction allocation tax National treasury disbursements Other
FY2014
2,186円.9 billion
(26.8%)
1,279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%)
8,152円.5 billion
FY2013
7,855円.3 billion
FY2014
3,469円.7 billion
(44.2%)
1,384円.7 billion
(17.6%)
157円.9 billion (2.0%)
157円.9 billion (2.0%)
551円.1 billion (7.0%)
551円.1 billion (7.0%)
2,291円.9 billion
(29.2%)
342円.6 billion (4.4%)
342円.6 billion (4.4%)
General administrative expenses Public welfare expenses Disaster relief expenses Sanitation expenses Disaster recovery expenses Other
FY2013 7,621円.2 billion
3,218円.9 billion
(42.2%)
1,251円.8 billion
(16.4%)
508円.1 billion (6.7%)
232円.9 billion (3.1%)
232円.9 billion (3.1%)
2,409円.5 billion
(31.6%)
583円.1 billion (7.7%)
FY2014 7,855円.3 billion
3,478円.3 billion
(44.3%)
2,767円.7 billion
(35.2%)
1,609円.3 billion (20.5%)
1,609円.3 billion (20.5%)
155円.9 billion (2.0%)
155円.9 billion (2.0%)
1,453円.4 billion (18.5%)
1,453円.4 billion (18.5%) 795円.0 billion (10.1%)
795円.0 billion (10.1%)
Mandatory expenses Investment expenses Ordinary construction expenses Disaster recovery project expenses Other Reserves
7,621円.2 billion
FY2013
3,495円.7 billion
(45.9%)
2,699円.7 billion
(35.4%)
1,425円.8 billion (18.7%)
1,425円.8 billion (18.7%)
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%)
31 White Paper on Local Public Finance, 2016
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 deficit of 59円.2 billion, a
decrease of 118円.2 billion year on year, or 200.3%, due mainly to an increase in the total costs associated with the review of local public
enterprise accounting standards. There were 826 businesses with surpluses, or 88.5% of all businesses, while 107 businesses had deficits,
or 11.5%.
Financial Status of Businesses of Local Public Enterprises of Disaster-Struck Organizations
Settlements by Businesses of Local Public Enterprises of Disaster-Struck Organizations
△しろさんかく50
△しろさんかく75
△しろさんかく100
△しろさんかく125
△しろさんかく150
△しろさんかく2502550750250500750
100 1,000
FY2014826107
△しろさんかく149円.8 billion
90円.6 billion
Net amount △しろさんかく59円.2 billion
FY201384494
△しろさんかく40円.9 billion
99円.9 billion
Net amount 59円.0 billion
(billions of yen) (businesses)
Surplus De cit No. of businesses with de cits
No. of businesses with surpluses
△しろさんかく150
△しろさんかく100
△しろさんかく50050100FY2013 FY2014
△しろさんかく64円.7 billion
34円.7 billion
19円.5 billion
△しろさんかく17円.1 billion
2円.8 billion
2円.8 billion
1円.8 billion
1円.8 billion
1円.8 billion
1円.8 billion
2円.7 billion
2円.7 billion
8円.8 billion
8円.8 billion
39円.1 billion
9円.2 billion
9円.2 billion
De cit
△しろさんかく17円.8 billion
De cit
△しろさんかく131円.3 billion
Net amount 59円.0 billion
Net amount 59円.0 billion Net amount 59円.2 billion
Net amount △しろさんかく59円.2 billion
Surplus
72円.1 billion
Surplus
76円.8 billion
1円.1 billion
1円.1 billion
1円.6 billion
1円.6 billion
4円.2 billion
4円.2 billion
2円.1 billion
2円.1 billion
19円.5 billion
△しろさんかく66円.6 billion
△しろさんかく0円.7 billion
(billion yen)
Total water supply (including small-scale water supply) Electricity
Industrial-use water Gas
Transportation Other
Hospitals Sewage business32Local Public Finance, 2016 –Illustrated–
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.
Outline of the Act on Assurance of Sound Financial Status of Local Governments
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 soundness plan (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 plan
(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
33 White Paper on Local Public Finance, 2016
2 Status of the Ratios for Measuring Financial Soundness and Financial Shortfall Ratio
The following graph shows the trend in the number of local governments with
a real deficit.
Based on FY2014 account settlements, there were no local governments with
a real deficit (i.e., a Real deficit ratio that exceeds 0%), and none had a Real
deficit ratio that equals or exceeds the Early financial soundness restoring
standards.
Targets of the Ratio for Measuring 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.
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 Assurance of Sound Financial Status of Local Governments)0510152025242422221111191913138822 00 22 00FY2007 FY2008 FY2009 FY2010 FY2011 FY2014
FY2013
FY2012
(No. of local governments)
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 standard34Local Public Finance, 2016 –Illustrated–
Promotion of the Soundness of Local Public Finance
The following graph shows the trend in the number of local governments with a
consolidated real deficit.
Based on FY2014 account settlements, there was one local municipal government
with a consolidated real deficit (i.e., with a consolidated Real deficit ratio that
exceeds 0%). Of those local governments, none had a Consolidated real deficit ratio
that equals or exceeds the Early financial soundness restoring standard.
The following graph shows the trend in the
number of local governments with a Real debt
service ratio equal to or exceeding 18%.
Based on FY2014 account settlements, there
was one local municipal 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
a local governments as a whole by taking the sum of the deficits
and surpluses of all accounts, and represents the extent to which
financial administration has worsened for a local government 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.010203040506070807171111122221139393131171799 77 66 11
Local 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 FY2014
FY2013
FY20120100200300400500436436333322202011399399121230630644 1117517511114
114 11636311414111414111292911Local 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
(No. of local governments)
FY2007 FY2008 FY2009 FY2010 FY2011 FY2014
FY2013
FY2012
35 White Paper on Local Public Finance, 2016
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 FY2014 account settlements, there was one local
municipal government with a Future burden ratio equal
to or exceeding the Early financial soundness restoring
standard.
The following graph shows the trend in the number of local public enterprises with a
financial shortfall.
Based on FY2014 account settlements, there were 58 local public enterprises with
a financial shortfall (i.e., with a Financial shortfall ratio that exceeds 0%). Of these,
13 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
income, which shows the size of business of local public
enterprises, and represents the extent to which financial
health has worsened.01234565533 3322 22 2211 11FY2007 FY2008 FY2009 FY2010 FY2011 FY2014
FY2013
FY2012
(No. of local governments)
Local governments with future burden ratio equaling or exceeding the early nancial soundness restoring standard05010015020025030015615625625661612022024949162
162 3838119
119 36368888202069691818606013135858FY2007 FY2008 FY2009 FY2010 FY2011 FY2014
FY2013
FY2012
(No. of local public enterprises)
Local public enterprises with nancial shortfall ratio Of this number, those equaling or exceeding the management soundness standard36Local Public Finance, 2016 –Illustrated–