White Paper on
Local Public Finance, 2017
– Illustrated –
FY2015 Settlement
Contents
The Role of Local Public Finance ............................................................... 01
FY2015 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
Future Financial Burden .............................................................................. 26
1. Trends in Local Bonds and Debt Burden ............................................................ 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 ......... 341 "Net totals of the revenues and expenditures" are the ordinary net account totals of 3,071 organizations (47
prefectures, 1,718 municipalities, 23 special wards, 1,217 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
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 FY2015, 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.Etc.School education Welfare
Roads Fire service
General administrative sector accounts
Ordinary accounts
Other accounts
(Public business
accounts)
Public enterprise accounts
●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.
National health
insurance accounts
Latter-stage elderly
medical care
accounts
Nursing care
insurance accountsEtc.Local Government Accounts
01 White Paper on Local Public Finance, 201701How large is local public finance?
The ratio of expenditure by local governments in gross domestic product (nominal) is 11.0%, about 2.7 times that of the central
government.
21,824円.0 billion
(4.1%)
58,575円.8billion
(11.0%)
45,055円.7billion
(8.5%)
7,312円.5 billion
(1.4%)
132,767円.9 billion
(24.9%)
311,161円.2 billion
(58.5%)
88,248円.4 billion
(16.6%)
13円.9 billion
(0.0%)
△しろさんかく50050100150200250300350400(trillion yen)
399,409円.6billion
(75.0%)
399,409円.6billion
(75.0%)
Private sector Net export of goods and services
Public sector
Gross Domestic Product
(expenditure, nominal)
532,191円.4 billion (100%)
Central government Local governments
Public corporations
Social security funds Household sector
Net export450Corporate sector
Gross Domestic Product (Expenditure, nominal) and Local Public Finance (FY2015)02Local Public Finance, 2017 –Illustrated–02The Role of Local Public Finance
Looking at the breakdown of public expenditure classified by final expenditure entity, local government expenditure accounts for 42.8% of
Government final consumption expenditure, and 49.4% 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.
●くろまるPublic gross capital formation
6,181円.3 billion (4.7%)
Central government
21,824円.0 billion (16.4%)
●くろまるGovernment
nal consumption expenditure
15,642円.7 billion (11.8%)
●くろまるGovernment
nal consumption expenditure
45,372円.5 billion (34.2%)
●くろまるPublic gross capital formation
13,203円.3 billion (9.9%)
●くろまるPublic gross capital formation
44円.5 billion (0.0%)
●くろまるGovernment
nal consumption expenditure
45,011円.2 billion (33.9%)
Social security funds
45,055円.7 billion(33.9%)
Local governments
58,575円.8 billion (44.1%)
●くろまるPublic gross capital formation
7,312円.5 billion (5.5%)
Public corporations
7,312.5 billion (5.5%)
Public
expenditures
132,767円.9 billion
(100.0%)
0 20 40 60 80 100
Government nal
consumption expenditure
106,026円.4 billion
Public gross capital
formation
26,741円.6 billion
Central government Social security funds Local governments Public corporations(%)14.8% 42.5% 42.8%
23.1% 0.2% 49.4% 27.3%
55,432.7
(11.3)
23,168.8
(4.7)
37,489.0
(7.6)
123,166円.6
billion
(25.0)
(45.0)
58,392.3
(11.3)
22,455.5
(4.3)
43,587.9
(8.4)
131,451円.8
billion
(25.4)
(44.4)
58,575.8
(11.0)
21,824.0
(4.1)
45,055.7
(8.5)
132,767円.9
billion
(24.9%)
(44.1%)
57,404.0
(10.8)
22,808.2
(4.3)
34,000.0
(6.4)
120,901円.3
billion
(22.8)
(47.5)
58,829.8
(11.2)
23,227.0
(4.4)
33,958.6
(6.5)
122,869円.6
billion
(23.4)
(47.9)
56,670.7
(10.7)
22,688.3
(4.3)
35,257.8
(6.6)
121,670円.9
billion
(22.9)
(46.6)
56,739.3
(11.2)
22,798.0
(4.5)
42,467.3
(8.4)
128,781円.9
billion
(25.4)
(44.1)
55,931.6
(11.2)
21,368.5
(4.3)
38,914.2
(7.8)
122,755円.8
billion
(24.6)
(45.6)
56,053.6
(11.4)
21,232.4
(4.3)
40,355.5
(8.2)
123,962円.7
billion
(25.1)
(45.2)
55,776.0
(11.3)
20,883.7
(4.2)
41,436.6
(8.4)
124,775円.6
billion
(25.2)
(44.7)
54,777.4
(10.8)
22,667.9
(4.4)
36,009.9
(7.1)
7,076.0
(1.4)
7,016.0
(1.4)
7,312.5
(1.4)
6,689.1
(1.3)
6,854.1
(1.3)
7,054.1
(1.3)
6,777.2
(1.3)
6,541.5
(1.3)
6,321.2
(1.3)
6,679.3
(1.4)
6,972.0
(1.4)
120,427円.1
billion
(23.6)
(45.5)
●くろまるSocial security
funds
●くろまるPublic
corporations
●くろまるCentral
government
●くろまるLocal
governments
Public
expenditures
FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2014 FY2015
FY2013
FY2012 Amount of
public expenditures
Percentage of public
expenditures in gross
domestic product
(expenditure, nominal)
Local share of public
expenditures
How large is local government expenditure in total public expenditure?
Breakdown of public expenditures
Trends in public expenditures
03 White Paper on Local Public Finance, 201703In which areas is the share of local expenditures high?
The below graph shows central and local governments’ expenditures by purpose as a share of net total expenditure, classified by final
expenditure entity.
The share of local governments’ expenditures is higher in areas that are deeply related to daily life, such as public welfare, sanitation, and
school education.%99% %1%%
88% %12%%
79% %21%%
78% %22%%
36% %64%%
49% %51%%
76% %24%%
43% %57%3%3% %97%%100%%100%%78% %22%%100%%
75% %25%%
70% %30%%
67% %33%%
65% %35%Sanitation expenses 3.8%
School education expenses 8.9%
Land development expenses 7.9%
Commercial and
industrial expenses 5.0%
Disaster recovery expenses,
etc. 0.6%
Debt services 21.3%
Pension expenses
(of public welfare expenses) 6.6%
Defense expenses 3.0%
Other 1.5%
Judicial, police, and
re service expenses 4.0%
Social education
expenses, etc.2.8%Public welfare expenses
(excluding pension expenses) 21.8%
Land conservation expenses 1.4%
Agriculture, forestry and
shery expenses 1.8%
Housing expenses, etc. 1.6%
Onkyu pension expenses 0.2%
General administrative
expenses, etc. 7.8%
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 58.0%
Local 58.0% Central 42.0%
Central 42.0%
Share of Expenditures by Purpose of Central and Local Governments (final expenditure based)04Local Public Finance, 2017 –Illustrated–04FY2015 Settlement Overview
1 Revenues
101,917円.5 billion (down 166円.0 billion, 0.2% year on year)
Regular portion: 97,511円.0 billion (up 20円.6 billion, 0.0% year on year)
Great East Japan Earthquake portion: 4,406円.5 billion (down 186円.6 billion, 4.1% year on year)
The increase of revenues in the regular portion resulted from an increase in local taxes. The decrease in revenues in the Great East
Japan Earthquake portion resulted from a decrease in National treasury disbursements, etc.
2 Expenditures
98,405円.2 billion (down 117円.6 billion, 0.1% year on year)
Regular portion: 94,570円.8 billion (up 59円.6 billion, 0.1% year on year)
Great East Japan Earthquake portion: 3,833円.4 billion (down 177円.2 billion, 4.4% year on year)
The increase of expenditures in the regular portion resulted from an increase in Social assistance expenses, and subsidies, etc. The
decrease in expenditures in the Great East Japan Earthquake portion resulted from a decrease in reserves, etc.
3 Revenue and Expenditure Settlement
The real balance showed a surplus of 1,962円.4 billion.
Category
Settlement Period No. of local governments with a deficit
FY2015 FY2014 FY2015 FY2014
Real balance 1,962円.4 billion 1,838円.3 billion − 2
Single year balance 125円.2 billion ▲さんかく119円.8 billion 1,133 1,605
Real single year
balance
501円.8 billion 231円.9 billion 1,055 1,502
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, 2017054 Trend in Scale of Account Settlement
Both revenues and expenditures of the regular portion have increased for three consecutive years.850909510010599.896.493.8100.191.197.05.36.095.05.092.54.5
101.197.496.2 97.5 97.54.993.2 94.5 94.64.292.990.7102.198.54.64.0(trillion yen)
FY2005 FY2013 FY2014 FY2015
FY2011 FY2012
Earthquake
portion4.4Earthquake
portion4.4Earthquake
portion3.8Earthquake
portion3.898円.4trillion
101円.9 trillion
Expenditures (Earthquake portion)
Expenditures (Regular portion)
Revenues (Earthquake portion)
Revenues (Regular portion)
5 Major Financial Indices
Ordinary balance ratio declined 0.4 percentage points year on year, to 91.7%.
Real debt service ratio declined 0.5 percentage points, to 9.9%.
Category FY2015 FY2014 Change
Ordinary balance ratio 91.7% 92.1% ▲さんかく0.4
Real debt service ratio 9.9% 10.4% ▲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 199,084円.9 billion (down 1,456円.5
billion, 0.7% year on year).
Category FY2015 FY2014 Change amount Change rate
Outstanding local government bonds 145,514円.3 billion 145,999円.6 billion ▲さんかく485円.3 billion ▲さんかく0.3%
Outstanding local government bonds
(excluding Bonds for the extraordinary
financial measures)
94,847円.6 billion 97,496円.6 billion ▲さんかく2,649円.0 billion ▲さんかく2.7%
Outstanding borrowing from the special
accounts for Local allocation tax 32,817円.3 billion 33,117円.3 billion ▲さんかく300円.0 billion ▲さんかく0.9%
Outstanding public enterprise bonds
(borne by ordinary accounts) 20,753円.3 billion 21,424円.5 billion ▲さんかく671円.2 billion ▲さんかく3.1%
Total 199,084円.9 billion 200,541円.4 billion ▲さんかく1,456円.5 billion ▲さんかく0.7%
Note :
Outstanding public enterprise bonds (borne by ordinary accounts) are the Public enterprise bonds to be redeemed by public corporations from funds in the Ordinary accounts (amount
based on surveys on local public finance).06Local Public Finance, 2017 –Illustrated–06Revenues
General revenue resources
59,287円.3 billion (58.2%)
Prefectures
total
52,049円.9 billion
General revenue resources
31,294円.9 billion (60.1%)
●くろまるLocal taxes
20,142円.6 billion
(38.7%)
●くろまるLocal transfer tax
2,257円.8 billion
(4.3%)
●くろまるSpecial local grants
47円.5 billion
(0.1%)
●くろまるLocal allocation tax
8,845円.7 billion
(17.0%)
●くろまるOther general revenue resources
1円.2 billion (0.0%)
General revenue resources
31,039円.5 billion (52.9%)
◆だいやまーくOther revenue resources
9,574円.4 billion (16.3%)
◆だいやまーくPrefectural
disbursements
3,945円.2 billion
(6.7%)
◆だいやまーくLocal bonds
5,187円.1 billion
(8.8%)
●くろまるBonds for the
extraordinary nancial
measures
1,841円.4 billion (3.1%)
◆だいやまーくNational treasury
disbursements
8,982円.5 billion (15.3%)
●くろまるLocal taxes
18,956円.0 billion
(32.3%)
●くろまるLocal transfer tax
421円.4 billion
(0.7%)
●くろまるSpecial local grants
71円.3 billion
(0.1%)
●くろまるLocal allocation tax
8,544円.9 billion
(14.5%)
●くろまるOther general revenue resources
3,045円.9 billion (5.3%)
Net total
101,917円.5 billion
◆だいやまーくNational treasury disbursements
15,282円.2 billion (15.0%)
◆だいやまーくLocal bonds
10,688円.0 billion (10.5%)
◆だいやまーくOther revenue resources
16,660円.0 billion (16.3%)
●くろまるLocal taxes
39,098円.6 billion (38.4%)
●くろまるBonds for the extraordinary
nancial measures
4,433円.7 billion (4.4%)
●くろまるLocal transfer tax
2,679円.2 billion (2.6%)
●くろまるSpecial local grants
118円.9 billion (0.1%)
●くろまるLocal allocation tax
17,390円.6 billion (17.1%)
Municipalities
total
58,728円.7 billion
◆だいやまーくNational treasury
disbursements
6,299円.6 billion (12.1%)
◆だいやまーくLocal bonds
5,528円.1 billion
(10.6%)
◆だいやまーくOther revenue resources
8,927円.3 billion (17.2%)
●くろまるBonds for the
extraordinary
nancial measures
2,592円.3 billion
(5.0%)
What are the revenue sources for local governments’ activities?
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 FY2015, General revenue resources accounted for 58.2%.
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 FY2015 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 (FY2015 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."
07 White Paper on Local Public Finance, 2017072 Revenues in Regular Portion and Great East Japan Earthquake Portion
Regular portion
97,511円.0 billion
◆だいやまーくOther revenue resources
14,668円.7 billion (15.1%)
◆だいやまーくLocal bonds
10,401円.0 billion (10.7%)
Great East Japan
Earthquake portion
4,406円.5 billion
◆だいやまーくOther revenue resources
1,991円.3 billion
(45.2%)
◆だいやまーくGeneral revenue resources
735円.5 billion (16.7%)
●くろまるOf this amount, earthquake disaster reconstruction
allocation tax was 588円.9 billion (13.4%)
◆だいやまーくLocal bonds
287円.0 billion (6.5%)
◆だいやまーくNational treasury
disbursements
13,889円.5 billion
(14.2%)
●くろまるOf this amount, ordinary
construction expenses were
1,384円.2 billion (1.4%)
●くろまるOf this amount, recovery and
reconstruction expenses were
139円.4 billion (0.1%)
◆だいやまーくGeneral revenue resources
58,551円.8 billion (60.0%)
◆だいやまーくNational treasury
disbursements
1,392円.7 billion (31.6%)
●くろまるOf this amount, ordinary construction
expenses were
190円.9 billion (4.3%)
●くろまるOf this amount, recovery and
reconstruction expenses were
335円.3 billion (7.6%)
●くろまるOf this amount, grants to measures
for earthquake disaster reconstruction were
305円.5 billion (6.9%)
Regular portion
49,468円.1 billion
◆だいやまーくGeneral revenue resources
30,888円.8 billion (62.4%)
◆だいやまーくOther revenue resources
7,689円.9 billion (15.6%)
◆だいやまーくLocal bonds
5,470円.4 billion (11.1%)
Great East Japan
Earthquake portion
2,581円.8 billion
◆だいやまーくOther revenue resources
1,237円.4 billion
(48.0%)
◆だいやまーくGeneral revenue resources
406円.1 billion (15.7%)
●くろまるOf this amount, earthquake disaster reconstruction
allocation tax was 316円.3 billion (12.2%)
◆だいやまーくNational treasury
disbursements
880円.7 billion (34.1%)
●くろまるOf this amount, ordinary construction
expenses were
51円.8 billion (2.0%)
●くろまるOf this amount, recovery and
reconstruction expenses were
272円.9 billion (10.6%)
●くろまるOf this amount, grants to measures
for earthquake disaster reconstruction were
38円.1 billion (1.5%)
◆だいやまーくLocal bonds
57円.6 billion (2.2%)
◆だいやまーくNational treasury
disbursements
5,419円.0 billion
(10.9%)
●くろまるOf this amount, ordinary
construction expenses were
944円.2 billion (1.9%)
●くろまるOf this amount, recovery and
reconstruction expenses were
98円.7 billion (0.2%)
◆だいやまーくGeneral revenue resources
30,710円.1 billion (54.4%)
Regular portion
56,439円.1 billion
◆だいやまーくOther revenue resources
8,751円.0 billion (15.5%)
◆だいやまーくLocal bonds
4,957円.1 billion (8.8%)
◆だいやまーくPrefectural disbursements
3,550円.4 billion (6.3%)
◆だいやまーくOther revenue resources
823円.2 billion
(36.0%)
◆だいやまーくGeneral revenue resources
329円.4 billion (14.4%)
●くろまるOf this amount, earthquake disaster reconstruction
allocation tax was 272円.7 billion (11.9%)
◆だいやまーくLocal bonds
230円.1 billion (10.0%)
◆だいやまーくPrefectural disbursements
394円.8 billion (17.2%)
◆だいやまーくNational treasury
disbursements
8,470円.5 billion
(15.0%)
●くろまるOf this amount, ordinary
construction expenses were
440円.0 billion (0.8%)
●くろまるOf this amount, recovery and
reconstruction expenses were
40円.7 billion (0.1%)
◆だいやまーくNational treasury disbursements
512円.0 billion (22.4%)
●くろまるOf this amount, ordinary construction
expenses were
139円.2 billion (6.1%)
●くろまるOf this amount, recovery and
reconstruction expenses were
62円.4 billion (2.7%)
●くろまるOf this amount, grants to measures
for earthquake disaster reconstruction were
267円.4 billion (11.7%)
Great East Japan
Earthquake portion
2,289円.5 billion
Net Total
Prefectures
Municipalities08Local Public Finance, 2017 –Illustrated–08355.8
915.8
Revenues
3 Revenue Trends
The ratio of general revenue resources turned downward in FY2011, but have been rising since FY2014.
[ ] shows general revenue resources + bonds for the extraordinary nancial measures.
FY2005
FY2015
FY2011
FY2012
0 100 trillion yen
FY2013
92円.9 trillion
15円.5 trillion
(16.7%)
10円.4 trillion
(11.2%)
11円.9 trillion
(12.8%)
55円.1 trillion (59.3%)
34円.8 trillion
(37.4%)
17円.0 trillion
(18.2%)
1円.8 trillion (2.0%) 1円.5 trillion (1.6%)
[58円.0 trillion (62.4%)]
2円.9 trillion (3.1%)
16円.7 trillion
(16.3%)
10円.7 trillion
(10.5%)
15円.3 trillion
(15.0%)
59円.3 trillion (58.2%)
39円.1 trillion
(38.4%)
17円.4 trillion
(17.1%)
2円.7 trillion (2.6%) 0円.1 trillion (0.1%)
[63円.7 trillion (62.5%)]
4円.4 trillion (4.4%)
100円.1 trillion
101円.1 trillion
101円.9 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%)
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%)
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%)
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
FY2014
17円.8 trillion
(17.4%)
11円.5 trillion
(11.3%)
15円.5 trillion
(15.2%)
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%)
102円.1 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
09 White Paper on Local Public Finance, 2017094
Ratio of National Taxes and
Local Taxes
The total of taxes collected as national and local taxes amounted to
99,068円.0 billion. Of this amount, national and local taxes accounted
for 60.5% and 39.5% respectively.
5 Local Taxes
Local taxes consist of prefectural taxes and municipal taxes.
Note :
Municipal taxes collected by the Tokyo Metropolitan Government are included in
municipal tax revenue figures, but not included in prefectural tax revenue figures.
Total
18,022円.2 billion
◆だいやまーくPrefectural inhabitant tax
6,110円.5 billion (33.9%)
◆だいやまーくEnterprise tax
3,703円.4 billion (20.5%)
◆だいやまーくOther taxes 99円.7 billion (0.6%)
◆だいやまーくAutomobile acquisition tax
137円.3 billion (0.8%)
◆だいやまーくPrefectural tobacco tax
153円.0 billion (0.8%)
◆だいやまーくReal estate acquisition tax
376円.8 billion (2.1%)
◆だいやまーくLight oil delivery tax
924円.5 billion (5.1%)
◆だいやまーくAutomobile tax
1,542円.8 billion (8.6%)
◆だいやまーくLocal consumption tax
4,974円.2 billion (27.6%)
●くろまるIndividual
5,171円.7 billion (28.7%)
●くろまるOn interest paid
95円.4 billion (0.5%)
●くろまるCorporate
843円.5 billion (4.7%)
●くろまるCorporate 3,509円.5 billion (19.5%)
●くろまるIndividual 193円.9 billion (1.1%)
Total
21,076円.3 billion
◆だいやまーくFixed asset tax
8,755円.0 billion (41.5%)
◆だいやまーくCity planning tax
1,244円.4 billion (5.9%)
◆だいやまーくMunicipal tobacco tax
936円.1 billion (4.4%)
◆だいやまーくOther taxes
592円.8 billion (2.8%)
●くろまるCorporate
2,324円.3 billion (11.0%)
◆だいやまーくMunicipal inhabitant tax
9,548円.0 billion (45.3%)
●くろまるIndividual
7,223円.7 billion (34.3%)
Total amount of
taxes
99,068円.0 billion
◆だいやまーくNational taxes
59,969円.4 billion
(60.5%)
●くろまるMunicipal taxes
21,076円.3 billion (21.3%)
●くろまるPrefectural taxes
18,022円.2 billion
(18.2%)
◆だいやまーくLocal taxes
39,098円.6 billion
(39.5%)
Composition of Revenue from Prefectural Taxes (FY2015 settlement)
Composition of Revenue from Municipal Taxes (FY2015 settlement)10Local Public Finance, 2017 –Illustrated–10Revenues
Prefectural tax revenues had been on a downward trend since FY2008, but have increased for four consecutive years since they turned
upward in FY2012.9.18.7 9.5
8.2 6.9
6.7 7.25.72.12.02.32.58.6
9.0 8.88.90.90.90.90.81.21.31.21.20.50.50.70.520.39.27.02.28.71.01.20.520.6
20.4 21円.1 trillion9.67.12.48.81.01.20.521.119.6FY2015
FY2011 FY2012 FY2013 FY2014
FY2005
(trillion yen)0246810121416182022
Fixed asset tax Other taxes
Municipal tobacco tax City planning tax
Corporate
Individual
Municipal inhabitant tax
Note : Municipal tax revenue figures include municipal taxes collected by the Tokyo Metropolitan Government.4.74.5 5.12.40.8
0.8 1.00.10.11.02.42.23.04.72.62.63.12.61.61.61.61.80.90.90.91.15.62.55.42.46.23.20.10.04.93.60.214.113.815.715.20.10.20.30.20.20.00.30.10.20.30.20.35.00.80.12.72.61.60.95.92.914.80.10.20.20.20.40.20.30.20.40.15.20.83.55.01.50.96.13.70.10.10.20.20.40.10.50.5
FY2015
FY2011 FY2012 FY2013 FY2014
FY200502468101214161820(trillion yen)
18円.0 trillion
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
Municipal tax revenues remained at almost the same level for the past five years.
Trends in Prefectural Tax Revenues
Trends in Municipal Tax Revenues
11 White Paper on Local Public Finance, 201711In 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 2.5 times the amount for Okinawa Prefecture, which was the lowest.
165.983.671.277.092.570.475.989.591.698.195.388.892.9
105.488.093.695.698.994.088.289.4103.2
118.694.692.394.4104.493.975.777.172.975.989.794.585.382.588.079.572.088.076.870.173.678.872.071.667.1
100.063.979.369.386.662.370.879.290.390.186.9
105.6
110.7
162.076.889.589.686.384.283.387.398.5
114.993.493.294.495.099.492.274.169.372.684.092.881.275.783.471.870.384.870.068.869.570.764.565.261.3
100.0
128.662.953.164.895.454.257.494.681.994.898.660.066.8
251.481.881.785.792.6
105.1
109.577.574.696.2142.283.085.382.6118.872.340.553.356.967.576.588.374.275.591.271.955.378.862.251.655.761.753.050.852.6
100.0
105.396.796.498.6102.196.998.388.3101.799.982.783.5130.489.598.3
102.1
106.4
103.8
102.6
104.396.4104.5
104.588.287.9
105.2
105.789.283.190.299.897.295.7
101.893.695.9
104.695.899.7
100.598.097.799.596.7
100.397.581.9
100.076.373.875.382.869.774.783.694.6
100.197.388.491.8158.9
104.796.496.892.6109.694.990.392.0108.5
116.7
101.298.595.6
105.499.371.481.873.678.093.993.790.188.084.791.171.887.279.067.373.684.774.575.881.0
100.0300250200150100500200150100500 200150100500 200150100500 200150100500
Individual inhabitant tax Two corporate taxes
Local consumption tax
(post settlement)
FY2015
settlement
amount
Local taxes total Fixed asset tax
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
12円.0trillion
Max/Min 2.6
6円.0trillion
Max/Min 6.2
5円.0trillion
Max/Min 1.6
38円.3trillion
Max/Min 2.5
8円.7trillion
Max/Min 2.4
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 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 (excluding local
corporation special transfer tax) and excludes overassessment, etc.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, 2016.
Index of Per Capita Revenue in Local Tax Revenue (with national average as 100)12Local Public Finance, 2017 –Illustrated–12Revenues
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 FY2015 33.1% for Income tax and Corporate tax, 50% for
Liquor tax, 22.3% for Consumption tax, and the total amount of Local corporate tax).
The total amount of the Local allocation tax in FY2015 was 17,390円.6 billion, down 0.2% 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.55.839.83.312.756.627.15.124.355.324.65.125.455.312.16.136.80.20.20.20.20.20.10.10.10.10.1 0.10.10.10.10.10.00.00.00.00.0Small cities
Midsize cities Towns and villages
(population of 10,000 or more)
Towns and villages
(population of Less than 10,000)
Local taxes Local transfer tax, etc. Special local grants Local allocation tax60(%)02040Note :
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 at the time of the effective date, and a "Small city" refers to a city with a population of less than 100,000.
RatioofTotalRevenueforMunicipalitiesComposedofGeneralRevenueResources
13 White Paper on Local Public Finance, 201713What are expenses spent on?
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.
Net total
98,405円.2 billion
◆だいやまーくPublic welfare expenses
25,254円.8 billion (25.7%)
◆だいやまーくEducational expenses
16,795円.5 billion (17.1%)
◆だいやまーくDebt service
12,929円.6 billion (13.1%)
◆だいやまーくOther expenses
8,375円.2 billion (16.6%)
◆だいやまーくAgriculture, forestry
and shery expenses
2,277円.0 billion (4.5%)
◆だいやまーくCommerce and
industry expenses
3,648円.4 billion
(7.2%)
◆だいやまーくSanitation
expenses
1,772円.2 billion
(3.5%)
◆だいやまーくGeneral
administrative
expenses
3,117円.7 billion (6.1%)
◆だいやまーくCivil engineering work expenses
5,232円.4 billion (10.3%)
◆だいやまーくDebt service
7,211円.9 billion
(14.2%)
◆だいやまーくEducational expenses
11,022円.1 billion
(21.7%)
◆だいやまーくPublic welfare
expenses
8,074円.3 billion
(15.9%)
Prefectures
total
50,731円.2 billion
Prefectures
total
50,731円.2 billion
Municipalities
total
56,535円.1 billion
Municipalities
total
56,535円.1 billion
◆だいやまーくGeneral
administrative
expenses
7,054円.8 billion
(12.5%)
◆だいやまーくDebt service
5,759円.9 billion
(10.2%)
◆だいやまーくEducational expenses
5,871円.8 billion
(10.4%)
◆だいやまーくPublic welfare
expenses
20,266円.9 billion
(35.8%)
◆だいやまーくCivil engineering work expenses
11,707円.2 billion (11.9%)
◆だいやまーくGeneral administrative expenses
9,608円.8 billion (9.8%)
◆だいやまーくSanitation expenses
6,301円.8 billion (6.4%)
◆だいやまーくAgriculture, forestry and
shery expenses
3,218円.2 billion (3.3%)
◆だいやまーくOther expenses
7,073円.2 billion (7.1%)
◆だいやまーくCommerce and industry expenses
5,516円.1 billion (5.6%)
◆だいやまーくSanitation
expenses
4,692円.3 billion
(8.3%)
◆だいやまーくCommerce and
industry expenses
1,929円.6 billion
(3.4%)
◆だいやまーくCivil engineering
work expenses
6,663円.0 billion (11.8%)
◆だいやまーくAgriculture, forestry
and shery expenses
1,407円.9 billion (2.5%)
◆だいやまーくOther expenses
2,888円.9 billion (5.1%)
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.
Expenditures
Composition of Expenditure Classified by Purpose (FY2015 settlement)14Local Public Finance, 2017 –Illustrated–14Expenditures
2 ExpendituresinRegular Portion andGreat East JapanEarthquakePortion (Expenses Classifiedby Purpose)
◆だいやまーくPublic welfare expenses
24,641円.1 billion (26.1%)
●くろまるOf this amount,
disaster relief expenses were
20円.3 billion (0.0%)
◆だいやまーくEducational expenses
16,437円.4 billion
(17.4%)
◆だいやまーくDebt service
12,908円.7 billion (13.6%)
◆だいやまーくCivil engineering work expenses
10,759円.7 billion (11.4%)
Great East Japan
Earthquake portion
3,834円.4 billion
◆だいやまーくPublic welfare expenses
613円.7 billion (16.0%)
●くろまるOf this amount,
disaster relief expenses were
590円.3 billion (15.4%)
◆だいやまーくEducational
expenses
358円.2 billion
(9.3%)
◆だいやまーくDebt service
20円.9 billion
(0.5%)
◆だいやまーくCivil engineering
work expenses
947円.5 billion (24.7%)
◆だいやまーくGeneral administrative
expenses
9,031円.0 billion (9.5%)
◆だいやまーくCommerce and
industry expenses
5,168円.7 billion (5.5%)
◆だいやまーくSanitation
expenses
6,169円.6 billion
(6.5%)
◆だいやまーくAgriculture, forestry
and shery expenses
2,977円.4 billion
(3.1%)
◆だいやまーくDisaster
recovery expenses
262円.3 billion (0.3%)
◆だいやまーくOther expenses
6,214円.9 billion (6.6%)
◆だいやまーくGeneral administrative
expenses
577円.8 billion (15.1%)
◆だいやまーくCommerce and
industry expenses
347円.4 billion (9.1%)
◆だいやまーくSanitation
expenses
132円.2 billion
(3.3%)
◆だいやまーくAgriculture, forestry
and shery expenses
240円.8 billion
(6.3%)
◆だいやまーくDisaster
recovery expenses
467円.3 billion (12.2%)
◆だいやまーくOther expenses
128円.6 billion (3.5%)
Regular portion
94,570円.8 billion
Great East Japan
Earthquake portion
2,246円.5 billion
◆だいやまーくGeneral administrative
expenses
2,914円.1 billion (6.0%)
◆だいやまーくCommerce and
industry expenses
3,319円.9 billion (6.8%)
◆だいやまーくSanitation
expenses
1,668円.2 billion
(3.4%)
◆だいやまーくAgriculture, forestry
and shery expenses
2,130円.2 billion
(4.4%)
◆だいやまーくDisaster
recovery expenses
159円.4 billion (0.3%)
◆だいやまーくOther expenses
7,809円.8 billion (16.2%)
◆だいやまーくPublic welfare expenses
7,447円.9 billion (15.4%)
●くろまるOf this amount,
disaster relief expenses were
7円.6 billion (0.0%)
◆だいやまーくEducational expenses
10,973円.9 billion
(22.6%)
◆だいやまーくDebt service
7,206円.1 billion
(14.9%)
◆だいやまーくCivil engineering work expenses
4,855円.3 billion (10.0%)
◆だいやまーくOther expenses
84円.7 billion (3.8%)
◆だいやまーくDisaster
recovery expenses
321円.2 billion (14.3%)
◆だいやまーくPublic welfare expenses
626円.4 billion (27.9%)
●くろまるOf this amount,
disaster relief expenses were
605円.3 billion (26.9%)
◆だいやまーくEducational
expenses
48円.2 billion
(2.1%)
◆だいやまーくDebt service
5円.9 billion
(0.3%)
◆だいやまーくCivil engineering
work expenses
377円.1 billion (16.8%)
◆だいやまーくGeneral administrative
expenses
203円.7 billion (9.1%)
◆だいやまーくCommerce and
industry expenses
328円.5 billion (14.6%)
◆だいやまーくSanitation
expenses
104円.0 billion
(4.6%)
◆だいやまーくAgriculture, forestry
and shery expenses
146円.8 billion
(6.5%)
Regular portion
48,484円.8 billion
◆だいやまーくGeneral administrative
expenses
6,671円.1 billion (12.2%)
◆だいやまーくCommerce and
industry expenses
1,907円.0 billion (3.5%)
◆だいやまーくSanitation
expenses
4,643円.0 billion
(8.5%)
◆だいやまーくAgriculture, forestry
and shery expenses
1,286円.2 billion
(2.4%)
◆だいやまーくDisaster
recovery expenses
129円.8 billion (0.2%)
◆だいやまーくOther expenses
2,549円.0 billion (4.8%)
Regular portion
54,495円.4 billion
◆だいやまーくPublic welfare expenses
19,938円.0 billion (36.6%)
●くろまるOf this amount,
disaster relief expenses were
7円.1 billion (0.0%)
◆だいやまーくEducational expenses
5,552円.9 billion
(10.2%)
◆だいやまーくDebt service
5,744円.0 billion
(10.5%)
Great East Japan
Earthquake portion
2,039円.7 billion
◆だいやまーくPublic welfare expenses
329円.0 billion (16.1%)
●くろまるOf this amount,
disaster relief expenses were
316円.4 billion (15.5%)
◆だいやまーくEducational
expenses
318円.9 billion
(15.6%)
◆だいやまーくDebt service
15円.9 billion
(0.8%)
◆だいやまーくCivil engineering work expenses
588円.6 billion (28.9%)
◆だいやまーくCivil engineering work expenses
6,074円.4 billion (11.1%)
◆だいやまーくGeneral administrative
expenses
383円.6 billion (18.8%)
◆だいやまーくCommerce and
industry expenses
22円.5 billion (1.1%)
◆だいやまーくSanitation
expenses
49円.4 billion
(2.4%)
◆だいやまーくAgriculture, forestry
and shery expenses
121円.7 billion
(6.0%)
◆だいやまーくDisaster
recovery expenses
150円.3 billion (7.4%)
◆だいやまーくOther expenses
59円.8 billion (2.9%)
Net total
Prefectures
Municipalities
15 White Paper on Local Public Finance, 2017153023.21.03.85.35.77.423.20.73.95.65.77.323.51.04.05.65.77.219.83.35.35.75.521.33.65.15.57.117.82.94.84.85.317.02.94.84.35.116.32.94.44.14.915.72.84.24.04.70.00.00.00.00.00.024.50.64.06.25.97.70.64.06.66.17.9FY2015
FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY20140510152025
\ trillion
25円.3 trillion
Disaster relief
Public assistance
Social welfare Elderly welfare Child welfare
(trillion yen)110161110811198110193
FY2015
FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014
Debt service
Sanitation expenses
Civil engineering work expenses
Agriculture, forestry and shery expenses
Public welfare expenses
General administrative expenses
Education expenses
Commerce and industry expenses6080100120140160180(%)
* Indices use FY2005 as base year of 100
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.
Trends in Expenditures Classified by Purpose (Net total)
Trends in Breakdown of Public Welfare Expenses by Purpose16Local Public Finance, 2017 –Illustrated–16Expenditures
Net total
25,254円.8 billion
Prefectures
8,074円.3 billion
Municipalities
20,266円.9 billion
Disaster relief
Public assistance
Social welfare
Elderly welfare
Child welfare
5,212円.4 billion (25.7%)
3,626円.1 billion (17.9%)
7,291円.1 billion (36.0%)
3,813円.9 billion (18.8%)
323円.5 billion (1.6%)
2,518円.2 billion (31.2%)
3,103円.1 billion (38.4%)
1,584円.7 billion (19.6%)
255円.3 billion (3.2%)
613円.0 billion (7.6%)
6,591円.6 billion (26.1%)
6,139円.3 billion (24.3%)
7,885円.0 billion (31.2%)
4,028円.3 billion (16.0%)
610円.6 billion (2.4%)
1,437円.8 billion (24.5%)
806円.7 billion (13.7%)
155円.0 billion (2.6%)
1,073円.6 billion (18.3%)
1,232円.4 billion (21.0%)
839円.8 billion (14.3%)
326円.5 billion (5.6%)
3,384円.8 billion (30.7%)
2,026円.9 billion (18.4%)
2,139円.8 billion (19.4%)
189円.3 billion (1.7%)
156円.0 billion (1.4%)
2,113円.4 billion (19.2%)
1,011円.9 billion (9.2%)
4,816円.9 billion (28.7%)
2,829円.0 billion (16.8%)
2,284円.8 billion (13.6%)
1,249円.8 billion (7.4%)
1,374円.0 billion (8.2%)
2,907円.7 billion (17.3%)
1,333円.3 billion (8.0%)
Other
Social education
Health and
physical education
Senior high school
Educational general
affairs
Junior high school
Elementary school
Net total
16,795円.5 billion
Prefectures
11,022円.1 billion
Municipalities
5,871円.8 billion
1,769円.5 billion (26.6%)
170円.5 billion (2.6%)
191円.0 billion (2.9%)
3,341円.2 billion(50.1%)
799円.6 billion (12.0%)
391円.2 billion (5.8%)
2,165円.1 billion (41.4%)
1,106円.3 billion (21.1%)
267円.5 billion (5.1%)
892円.7 billion (17.1%)
518円.2 billion (9.9%)
282円.6 billion (5.4%)
3,893円.5 billion (33.3%)
1,261円.9 billion (10.8%)
436円.7 billion (3.7%)
4,174円.3 billion (35.7%)
1,285円.5 billion (11.0%)
655円.3 billion (5.5%)
Other
Harbors
Housing
Rivers and coasts
Road and bridges
Urban planning
Net total
11,707円.2 billion
Prefectures
5,232円.4 billion
Municipalities
6,663円.0 billion
Breakdown of Public Welfare Expenses by Purpose
Breakdown of Educational Expenses by Purpose
Breakdown of Civil Engineering Work Expenses by Purpose
17 White Paper on Local Public Finance, 2017174 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Ordinary construction work expenses
14,183円.8 billion (14.4%)
●くろまるLatter-stage elderly healthcare accounts
1,492円.8 billion (1.5%)
◆だいやまーくSubsidizing expenses
9,867円.2 billion (10.0%)
◆だいやまーくReserves
3,769円.2 billion (3.8%)
◆だいやまーくTransfers to other accounts
5,612円.2 billion (5.7%)
◆だいやまーくGoods expenses
9,315円.3 billion (9.5%)
●くろまるNational health insurance accounts
1,430円.0 billion (1.5%)
●くろまるElderly nursing care insurance accounts
1,468円.1 billion (1.5%)
Investment expenses
14,913円.4 billion (15.2%)
Net total
98,405円.2 billion
◆だいやまーくOther
6,126円.6 billion (6.2%)
●くろまるDebt service
12,901円.4 billion (13.1%)
●くろまるSocial assistance expenses
13,334円.3 billion (13.6%)
●くろまるPersonnel expenses
22,565円.5 billion (22.9%)
Mandatory expenses
48,801円.3 billion (49.6%)
Mandatory expenses
21,933円.1 billion
(43.2%)
●くろまるPersonnel expenses
13,688円.0 billion
(27.0%)
●くろまるSocial assistance
expenses
1,055円.2 billion
(2.1%)
●くろまるDebt service
7,190円.0 billion
(14.2%)
Prefectures
total
50,731円.2 billion
◆だいやまーくTransfers to other accounts
155円.0 billion (0.3%)
◆だいやまーくGoods
expenses
1,681円.9 billion
(3.3%)
◆だいやまーくOther 2,225円.7 billion (3.8%)
Mandatory expenses
26,910円.4 billion
(47.6%)
●くろまるPersonnel expenses
8,877円.6 billion
(15.7%)
Municipalities
total
56,535円.1 billion
●くろまるSocial assistance
expenses
12,279円.2 billion
(21.7%)
●くろまるDebt service
5,753円.6 billion
(10.2%)
◆だいやまーくTransfers to other accounts
5,457円.2 billion (9.7%)
◆だいやまーくReserves
1,952円.3 billion
(3.5%)
◆だいやまーくSubsidizing
expenses
4,047円.8 billion
(7.2%)
◆だいやまーくGoods expenses
7,633円.4 billion
(13.5%)
●くろまるOrdinary construction
work expenses
6,779円.4 billion (13.4%)
◆だいやまーくOther 3,930円.3 billion (7.8%)
◆だいやまーくSubsidizing
expenses
13,954円.1 billion
(27.5%)
◆だいやまーくReserves
1,816円.9 billion
(3.6%)
Investment expenses
7,259円.9 billion (14.3%)
●くろまるSubsidized public works expenses
7,207円.0 billion (7.3%)
●くろまるNon-subsidized public works expenses
6,259円.6 billion (6.4%)
●くろまるNon-subsidized public
works expenses
2,415円.6 billion (4.8%)
●くろまるSubsidized public works expenses
3,714円.1 billion (7.3%)
●くろまるOrdinary construction
work expenses
8,028円.3 billion (14.2%)
Investment expenses
8,308円.3 billion (14.7%)
●くろまるSubsidized public works expenses
3,764円.5 billion (6.7%)
●くろまるNon-subsidized public works expenses
4,092円.4 billion (7.2%)
Composition of Expenditures Classified by Type (FY2015 settlement)18Local Public Finance, 2017 –Illustrated–18Expenditures
5 Expenditures in Regular Portion and Great East Japan Earthquake Portion (Expenses Classified byType)
Regular portion
94,570円.8 billion
◆だいやまーくMandatory expenses
48,738円.0 billion (51.5%)
●くろまるPersonnel expenses
22,528円.3 billion
(23.8%)
●くろまるSocial assistance
expenses
13,329円.2 billion
(14.1%)
●くろまるDebt service
12,880円.5 billion
(13.6%)
●くろまるOrdinary construction work expenses 12,565円.5 billion (13.3%)
●くろまるDisaster recovery project expenses 262円.2 billion (0.3%)
◆だいやまーくInvestment expenses
12,827円.7 billion (13.6%)
Great East Japan
Earthquake portion
3,834円.4 billion
◆だいやまーくOther
332円.2 billion (8.8%)
◆だいやまーくReserves
802円.7 billion
(20.9%)
◆だいやまーくSubsidizing
expenses
153円.9 billion
(4.0%)
◆だいやまーくGoods expenses
396円.6 billion (10.3%)
◆だいやまーくMandatory expenses
63円.3 billion (1.6%)
◆だいやまーくOther
11,406円.7 billion (12.1%)
◆だいやまーくReserves
2,966円.5 billion
(3.1%)
◆だいやまーくSubsidizing
expenses
9,713円.2 billion
(10.3%)
◆だいやまーくGoods expenses
8,918円.7 billion (9.4%)
●くろまるOrdinary construction
work expenses
1,618円.3 billion (42.2%)
●くろまるDisaster recovery
project expenses
467円.3 billion (12.2%)
●くろまるPersonnel expenses
37円.2 billion (1.0%)
●くろまるSocial assistance expenses
5円.1 billion (0.1%)
●くろまるDebt service
20円.9 billion (0.5%)
◆だいやまーくInvestment expenses
2,085円.7 billion (54.4%)
Regular portion
48,484円.8 billion
Great East Japan
Earthquake portion
2,246円.5 billion
◆だいやまーくOther
3,810円.1 billion (7.9%)
◆だいやまーくReserves
1,359円.8 billion
(2.8%)
◆だいやまーくSubsidizing
expenses
13,447円.8 billion
(27.7%)
◆だいやまーくGoods expenses
1,619円.1 billion (3.3%)
◆だいやまーくMandatory expenses
21,90円.4 billion (45.2%)
●くろまるPersonnel expenses
13,667円.6 billion
(28.2%)
●くろまるSocial assistance
expenses
1,053円.7 billion
(2.2%)
●くろまるDebt service
7,184円.1 billion
(14.8%)
●くろまるOrdinary construction work expenses 6,183円.3 billion (12.8%)
●くろまるDisaster recovery project expenses 159円.3 billion (0.3%)
◆だいやまーくInvestment expenses
6,342円.6 billion (13.1%)
◆だいやまーくOther
275円.1 billion (12.4%)
◆だいやまーくReserves
457円.1 billion
(20.3%)
◆だいやまーくSubsidizing
expenses
506円.4 billion
(22.5%) ◆だいやまーくGoods expenses
62円.8 billion (2.8%)
◆だいやまーくMandatory expenses
27円.7 billion (1.2%)
●くろまるPersonnel expenses
20円.4 billion (0.9%)
●くろまるSocial assistance expenses
1円.4 billion (0.1%)
●くろまるDebt service
5円.9 billion (0.3%)
●くろまるOrdinary construction
work expenses
596円.1 billion (26.5%)
●くろまるDisaster recovery
project expenses
321円.2 billion (14.3%)
◆だいやまーくInvestment expenses
917円.4 billion (40.8%)
◆だいやまーくOther
7,625円.1 billion (14.1%)
◆だいやまーくReserves
1,606円.7 billion
(2.9%)
◆だいやまーくSubsidizing
expenses
3,987円.7 billion
(7.3%)
◆だいやまーくGoods expenses
7,299円.6 billion (13.4%)
◆だいやまーくMandatory expenses
26,873円.9 billion (49.3%)
●くろまるPersonnel expenses
8,860円.7 billion
(16.3%)
●くろまるSocial assistance
expenses
12,275円.5 billion
(22.5%)
●くろまるDebt service
5,737円.7 billion
(10.5%)
Regular portion
54,495円.4 billion
●くろまるOrdinary construction work expenses 6,972円.5 billion (12.8%)
●くろまるDisaster recovery project expenses 129円.8 billion (0.2%)
◆だいやまーくInvestment expenses
7,102円.4 billion (13.0%)
◆だいやまーくOther
57円.9 billion (2.9%)
◆だいやまーくReserves
345円.6 billion
(16.9%)
◆だいやまーくSubsidizing
expenses
60円.1 billion
(2.9%)
◆だいやまーくGoods expenses
333円.8 billion (16.4%)
Great East Japan
Earthquake portion
2,039円.7 billion
◆だいやまーくMandatory expenses
36円.4 billion (1.8%)
●くろまるPersonnel expenses
16円.8 billion (0.8%)
●くろまるSocial assistance expenses
3円.7 billion (0.2%)
●くろまるDebt service
15円.9 billion (0.8%)
●くろまるOrdinary construction
work expenses
1,055円.8 billion (45.7%)
●くろまるDisaster recovery
project expenses
150円.1 billion (7.4%)
◆だいやまーくInvestment expenses
1,205円.9 billion (59.1%)
Net total
Prefectures
Municipalities
19 White Paper on Local Public Finance, 2017196080100120140160180174939412013612289(%)
FY2014 FY2015
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
1.4 1.4 1.6 1.8 2.0 2.1 2.3 2.5
0.3 0.3 0.2 0.2 0.2 0.2 0.2 0.2
2.8 3.0 3.2 3.3 3.35.05.2 5.0
2.6 2.72.72.73.13.4
3.5 3.6
0.6 0.40.50.50.50.5
0.8 0.7
7.7 7.8
8.2 8.59.111.2
12.0 12.02.70.25.03.70.612.23.10.25.33.70.612.93.10.25.63.70.702468101214\ trillion
13円.3 trillion
(trillion yen)
FY2014 FY2015
FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013
Social welfare Elderly welfare Child welfare Other
Public assistance
*Indices use FY2005 as base year of 100
6 Breakdown of Expenses Classified by Type
Social assistance expenses, Subsidizing expenses, Transfers to other accounts, and Goods expenses have been rising.
Trends in Expenditures Classified by Type (Net total)
Trends in Breakdown of Social Assistance Expenses by Purpose20Local Public Finance, 2017 –Illustrated–20Expenditures
22,524.3
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
15,008.6 15,011.3 15,086.9
14,729.7
14,286.2
14,110.1 14,082.8
13,893.6
8,878.2
22,565.5
13,688.0
8,877.6
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
FY2014 FY2015
FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013
27,000
26,000
25,000
24,000
23,000
16,000
15,000
11,000
10,000
9,000
14,0000(billion yen)
Net total Prefectures Municipalities(%)1000204060800.0%
9円.7 billion0.0%Net total
22,565円.5 billion
Prefectures
13,688円.0 billion
Municipalities
8,877円.6 billion0.0%1円.1 billion0.0%0.1%
8円.6 billion0.1%10,526円.5 billion
46.6%
5,333円.9 billion
23.6%
15,870円.1 billion
70.3%
1,293円.5 billion 5.8%
396円.9 billion2.9%2,074円.6 billion 9.2%
3,327円.3 billion 14.7%
2,052円.8 billion 15.0%
1,208円.5 billion 8.8%
896円.8 billion 10.0%
1,274円.5 billion 14.4%
866円.1 billion 9.8%
6,676円.6 billion
48.8% 3,849円.9 billion
43.4%
10,029円.8 billion
73.3% 5,840円.2 billion
65.8%
3,352円.2 billion
24.5%
1,981円.7 billion
22.3%
Employee salaries Base salaries Other allowances Temporary employee salaries
Retirement allowances Local public servant, mutual-aid associations, etc. Other
Personal expenses for FY2015 increased year on year due mainly to the measures 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
21 White Paper on Local Public Finance, 2017216.2 5.8 5.5 5.4 5.9 5.6 6.1 6.1
7.8 7.77.77.2
6.8 6.47.26.9 5.7 5.4
5.6 6.31.31.31.31.21.30.8
0.8 0.90.80.715.114.313.513.014.413.3
12.5 12.414.214.87.26.30.7Subsidized public works Non-subsidized public works Obligatory share of public works directly carried out by the national government
14円.2 trillion024681012141618
(trillion yen)
FY2014 FY2015
FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013
888円.3 billion (6.3%)
626円.0 billion (4.4%)
864円.1 billion (6.1%)
1,521円.0 billion (10.7%)
7,083円.2 billion (49.9%)
2,209円.6 billion (15.6%)
991円.6 billion (7.0%)
326円.3 billion (4.8%)
229円.6 billion (3.4%)
237円.7 billion (3.5%)
1,238円.0 billion (18.3%)
3,930円.3 billion (58.0%)
425円.9 billion (6.3%)
391円.6 billion (5.7%)
654円.4 billion (8.2%)
480円.1 billion (6.0%)
677円.6 billion (8.4%)
504円.2 billion (6.3%)
3,281円.6 billion (40.9%)
1,804円.3 billion (22.5%)
626円.1 billion (7.7%)100020406080
Net total
14,183円.8 billion
Prefectures
6,779円.4 billion
Municipalities
8,028円.3 billion
General administrative expenses Public welfare expenses Sanitation expenses Agriculture, forestry and shery expenses
Civil engineering work expenses Education expenses Other expenses(%)Ordinary construction work expenses decreased year on year due mainly to a decrease in Subsidized public works. In addition, Civil
Engineering Work Expenses account for the largest ratio in the breakdown of Ordinary construction work expenses by purpose.
Trends in Breakdown of Ordinary Construction Work Expenses Classified by Type (Net total)
Breakdown of Ordinary Construction Work Expenses by Purpose22Local Public Finance, 2017 –Illustrated–22Expenditures
(trillion yen)
FY2015
FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014
General administrative expenses
Commerce and industry expenses
Public welfare expenses
Civil engineering work expenses
Sanitation expenses
Education expenses
Agriculture, forestry and shery expenses
Other10.710357911
1.0 0.9 0.8 1.02.81.4
0.7 0.8
2.1 2.5 2.73.03.33.33.5 3.61.01.0 0.91.01.11.11.1 1.10.30.3 0.30.30.30.40.30.40.5
0.4 0.40.50.80.50.60.60.9 0.8 0.80.80.90.91.01.01.1 1.1 1.21.21.21.41.41.40.4 0.3 0.30.30.30.30.30.37.2 7.4 7.58.19.48.99.21.03.61.10.50.61.01.40.39.50.73.71.10.40.50.91.50.59.30.83.91.10.50.70.91.60.4
9.9 trillion
9円.9 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
FY2015
FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014
1.5 1.5 1.4 1.4 1.4 1.3 1.3 1.2
1.2 1.2 1.2 1.1 1.1 1.2 1.2 1.2
0.8 0.8 0.9
0.1 0.0 0.0
1.1 1.2 1.3 1.3 1.4
1.0 1.0 1.0
1.1 1.1 1.2 1.2 1.3
0.0 0.1 0.10.10.0 0.0 0.00.14.6 4.6 4.64.84.9 5.0
5.1 5.21.21.21.41.30.15.101234561.21.31.51.40.05.41.21.41.51.50.1
5円.6 trillion
Trends in Breakdown of Subsidizing Expenses by Purpose
Trends in Breakdown of Transfers to Other Accounts
23 White Paper on Local Public Finance, 201723Flexibility of the Financial Structure
How financially capable are local governments to respond to local demands?
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 FY2015 Ordinary balance ratio declined 0.4 percentage
points year-on-year to 91.7%, staying above 90% for the
twelfth consecutive year.
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.
Personnel expenses Social assistance expenses Debt service Other
FY2015
FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2014
FY2013(%)33.4 31.1
6.4 6.6
21.1 21.1
31.7 32.836.54.821.528.691.436.05.021.429.091.436.25.221.530.593.435.15.321.530.992.834.85.721.531.893.832.96.220.730.790.5 92.6 91.632.66.620.932.692.7010203040506070809010031.36.820.833.292.130.96.920.133.891.7(%)Prefectures
Total Municipalities
FY2015
FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2014
FY2013
FY201290.39080100
90.7 90.2
90.2 90.3
92.0 91.8 91.889.292.6 92.6
94.7 93.995.991.9
94.9 94.693.091.4 91.4
93.4 92.893.890.592.692.791.691.390.093.0 93.4
92.1 91.7
* 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)24Local Public Finance, 2017 –Illustrated–242 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.(%)FY2007 FY2008 FY2009 FY2010 FY2011 FY2013 FY2015
FY2014
FY2012
Prefectures Municipalities
Net total13.512.8 13.013.513.9 13.712.311.811.210.5 9.99.212.8
12.3 12.1 12.0 11.811.313.58.610.913.112.78.07.410.49.9978101112131415*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.
Prefectures Municipalities
Net total(%)FY2006
FY2005 FY2015
FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2014
FY201319.418.6 18.616.416.216.518.918.817.019.318.619.419.319.518.719.718.515.719.918.418.619.219.119.319.218.217.717.617.717.517.415.314.720191817161415*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 Ratio
25 White Paper on Local Public Finance, 201725Future Financial Burden
What is the status of debt in local public finance?
Notes :
1. Outstanding local government bonds excludes special fund public investment bonds.2. Outstanding public enterprise bonds (borne by ordinary accounts) are the Public enterprise bonds to be redeemed by public corporations from funds in the Ordinary accounts
(amount based on surveys on local public finance).
1 Trends in Local Bonds and Debt Burden
Real future financial burden by Local bonds and Debt burden amounted to 137,602円.2 billion at the end of FY2015, down 0.7% year on year.303006090120180150
13.0 13.6 13.9 15.3 17.2
15.7 17.9 19.7 21.6 25.4
124.4 121.1 118.4 115.8 114.4
12.3 11.8 12.5 12.2
139.3 137.8 136.0 134.6 134.817.931.4
110.712.3136.519.636.1
107.213.0136.721.040.6
104.113.4137.122.445.0
101.014.5138.122.648.597.515.1
138.523.350.794.815.4
137.612.2FY2005 FY2015
FY2014
FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2013
FY2012
(trillion yen)
Reserves on hand
Debt burden Outstanding local government bonds + Debt burden - Reserves on hand
Bonds for the extraordinary nancial measures Outstanding local government bonds
(excluding Bonds for the extraordinary nancial measures)
(trillion yen)
Notes : 1. Outstanding local government bonds excludes special fund public investment bonds.
2. Debt burden is the amount scheduled to be expended in the following fiscal years.
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 199円 trillion at the end of FY2015.27.8201.4
201.433.627.5
200.2
200.233.626.8
198.6
198.633.626.1
197.1
197.133.625.3
198.7
198.733.624.1
199.8
199.833.623.6
200.4
200.433.522.9
201.0
201.033.422.1
201.4
201.433.320.8
199.1
199.132.821.4
200.5
200.533.115.7
124.417.9121.119.7118.421.6115.825.4114.431.4110.736.1107.240.6104.145.0101.048.597.550.794.8
FY2005 FY2015
FY2014
FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2013
FY2012250200150100500
(trillion yen)
Outstanding local government bonds (excluding Bonds for the extraordinary nancial measures)
Bonds for the extraordinary nancial measures
Outstanding borrowing from special account for local allocation tax and transfer tax grants Outstanding public enterprise bonds (in ordinary accounts)26Local Public Finance, 2017 –Illustrated–26Local Public Enterprises
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.(%)Water-supply business
(including small-scale
water supply business)
Sewerage business Transportation
business
(railways)
Transportation
business
(buses)
Hospitals
124.46 million
(99.5%)
Out of 125.04 million
Current water-supply
population
103.60 million
(90.3%)
Out of 114.74 million
Sewage disposal
population
3,305 million
(13.6%)
Out of 24,300 million
No. of passengers
per year
939 million
(20.6%)
Out of 4,600 million
No. of passengers
per year
185,000
(11.8%)
Out of 1,566,000
No. of hospital beds1002090100Notes : 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.
27 White Paper on Local Public Finance, 2017272 Number of Businesses Operated by Local Public Enterprises
8,614 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.
◆だいやまーくHospitals
636 (7.4%)
◆だいやまーくResidential development
435 (5.0%)
◆だいやまーくOther
1,251 (14.6%)
◆だいやまーくCare services
572 (6.6%)
No. of
businesses
8,614
(End of FY2015)
◆だいやまーくWater supply business
2,081 (24.2%)
●くろまるWater supply business 1,344 (15.6%)
●くろまるSmall-scale water supply business
737 (8.6%)
◆だいやまーくSewerage business
3,639 (42.2%)
3 Scale of Financial Settlement
The scale of total financial settlement is 17,088円.2 billion. By type of business, sewerage accounts for the largest ratio, followed, in order,
by hospitals, total water supply, transportation, and residential development.
◆だいやまーくHospitals
4,640円.8 billion (27.2%)
◆だいやまーくTransportation
1,084円.8 billion (6.3%)
◆だいやまーくOther
1,109円.5 billion (6.5%)
◆だいやまーくResidential development
740円.6 billion (4.3%)
Scale of nancial
settlement
17,088円.2 billion
◆だいやまーくSewerage business
5,520円.8 billion (32.3%)
◆だいやまーくWater supply business
(including small-scale water supply)
3,991円.7 billion (23.4%)
(End of FY2015)28Local Public Finance, 2017 –Illustrated–28Local Public Enterprises
4 Financial Status
Local public enterprises had a surplus of 731円.6 billion. By type of business, water supply, electricity, gas and sewages showed a surplus.
424.6
523.1
276.7
508.1
△しろさんかく525.2
731.6600800700500400300200100
△しろさんかく400
△しろさんかく5000(billion yen)
FY2005 FY2015
FY2011 FY2012 FY2014
FY2013
Total balance600800
1,0004002000△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1,000
(billion yen)
Surplus
De cit
Total de cit
△しろさんかく3.7
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3.7
Other △しろさんかく3.7
Other △しろさんかく3.7
Other △しろさんかく3.7
Other △しろさんかく3.7
Electricity 8.8
Electricity 8.8
Electricity 8.8
Electricity 8.8
Electricity 8.8
Hospital 4.2
Hospital 4.2
Hospital 4.2
Hospital 4.2
Hospital 4.2
Gas 5.2
Gas 5.2
Gas 5.2
Gas 5.2
Gas 5.2
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
Gas △しろさんかく1.5
Other △しろさんかく4.7
Electricity 6.6
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
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
Gas 2.0
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
Gas △しろさんかく2.2
Industrial-use water 23.9
Water supply 245.3
(Including small-scale
water supply)
Transportation △しろさんかく64.0
Hospitals △しろさんかく147.6
Other △しろさんかく19.7
Total de cit
△しろさんかく233.5
Sewage business 229.0
Electricity 26.9
Gas 5.6
Industrial-use water 28.2
Water supply 363.4
(Including small-scale
water supply)
Transportation 111.7
Hospitals △しろさんかく70.3
Other △しろさんかく1.7
Total surplus
510.2
Other 151.2
Sewage business 80.5
Electricity 9.3
Total de cit
△しろさんかく72.0
Total surplus
803.6
Other 38.8
FY2005 FY2015
FY2011 FY2012 FY2014
FY2013
Trends in the Financial Status of Local Public Enterprises
29 White Paper on Local Public Finance, 201729Impact of Great East Japan Earthquake
1 Settlement of Disaster-Struck Organizations
1.Specified Disaster-Struck Prefectures
In FY2015, the total revenues of the nine specified disaster-struck prefectures amounted to 10,848円.3 billion, decreasing by 267円.1 billion
year on year, or 2.4% (0.7% national increase). Total expenditures of the entities amounted to 10,348円.0 billion, decreasing by 229円.2
billion year on year, or 2.2% (1.0% 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.
10,848円.3 billion
FY2014 11,115円.5 billion
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%)
FY2015 2,952円.2 billion
(27.2%)
2,010円.0 billion
(18.5%)
1,817円.3 billion
(16.8%)
4,068円.8 billion
(37.5%)
307円.3 billion (2.8%)
Local taxes Local allocation tax Earthquake disaster reconstruction allocation tax National treasury disbursements Other
10,577円.2 billion
FY2014
910円.4 billion
(8.6%)
1,687円.3 billion
(16.0%)
333円.6 billion (3.2%)
7,272円.6 billion
(68.7%)
511円.8 billion (4.8%)
373円.3 billion
(3.5%)
10,348円.0 billion
FY2015
1,833円.1 billion
(17.7%)
359円.6 billion (3.5%)
7,062円.3 billion
(68.2%)
669円.0 billion (6.5%)
606円.5 billion (5.9%)
424円.0 billion
(4.1%)
General administrative expenses Public welfare expenses Disaster relief expenses Sanitation expenses Disaster recovery expenses Other
FY2014 10,577円.2 billion
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%) 333円.6 billion (3.2%) 766円.1 billion (7.2%)
FY2015 10,348円.0 billion
4,567円.3 billion
(44.1%)
3,923円.2 billion
(37.9%)
1,857円.5 billion (18.0%)
1,497円.9 billion (14.5%) 359円.6 billion (3.5%) 671円.6 billion (6.5%)
Mandatory expenses Investment expenses Ordinary construction work expenses Disaster recovery project expenses Other Reserves
Revenues
Expenditures Classified by Purpose
Expenditures Classified by Type30Local Public Finance, 2017 –Illustrated–30Impact of Great East Japan Earthquake
2.Specified Disaster-Struck Municipalities
In FY2015, the total revenues of the 227 municipalities designated as specified disaster-struck municipalities amounted to 8,296円.1 billion,
decreasing by 92円.5 billion year on year, or 1.1% (1.0% national increase). Total expenditures of the entities amounted to 7,744円.5 billion,
decreasing by 110円.9 billion year on year, or 1.4% (0.9% 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.)
8,388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%)
FY2014
8,296円.1 billion
2,245円.8 billion
(27.1%)
1,285円.3 billion
(15.5%)
1,241円.0 billion
(15.0%)
3,524円.0 billion
(42.4%)
272円.5 billion (3.3%)
FY2015
Local tax Local allocation tax Earthquake disaster reconstruction allocation tax National treasury disbursements Other
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%)
551円.1 billion (7.0%)
2,291円.9 billion
(29.2%)
342円.6 billion (4.4%)
FY2015 7,744円.5 billion
1,177円.0 billion
(15.2%)
2,325円.4 billion
(30.0%)
319円.6 billion (4.1%) 555円.0 billion (7.2%)
160円.5 billion (2.1%)
3,526円.6 billion
(45.5%)
General administrative expenses Public welfare expenses Disaster relief expenses Sanitation expenses Disaster recovery expenses Other
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%)
155円.9 billion (2.0%)
1,453円.4 billion (18.5%) 795円.0 billion (10.1%)
FY2015 7,744円.5 billion
3,297円.1 billion
(42.6%)
2,796円.1 billion
(36.1%)
1,651円.3 billion (21.3%)
160円.3 billion (2.1%)
1,491円.1 billion (19.3%) 530円.4 billion (6.8%)
Mandatory expenses Investment expenses Ordinary construction work expenses Disaster recovery project expenses Other Reserves
Revenues
Expenditures Classified by Purpose
Expenditures Classified by Type
31 White Paper on Local Public Finance, 2017312 Financial Status of Businesses of Local Public Enterprises of Disaster-Struck Organizations
Total revenues and expenditures of local enterprises of disaster-struck organizations amounted to a surplus of 103円.1 billion, an increase
of 162円.3 billion year on year, or 274.3%. There were 847 businesses with surpluses, or 91.2% of all businesses, while 82 businesses had
deficits, or 8.8%.
* Local enterprises of disaster-struck organizations :
Nine 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,
and 178 municipalities stipulated in Appended Table 1 of the Japanese government ordinance 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 (including some labor unions joined by the above bodies).
FY201584782
△しろさんかく28円.1 billion
131円.2 billion
Net amount 103円.1 billion
△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250255075100125150(billion yen)
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
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50050100150
FY2015
7円.8 billion
7円.8 billion
3円.7 billion
3円.7 billion
6円.4 billion
6円.4 billion
1円.5 billion
1円.5 billion
7円.5 billion
7円.5 billion
26円.2 billion
50円.1 billion
De cit
△しろさんかく0円.1 billion
Surplus
103円.2 billion
(billion yen)
FY2014
△しろさんかく64円.7 billion
34円.7 billion
19円.5 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
De cit
△しろさんかく131円.3 billion
Net amount 59円.2 billion
Net amount △しろさんかく59円.2 billion
Net amount 103円.1 billion
Net amount 103円.1 billion
Surplus
72円.1 billion
△しろさんかく66円.6 billion
△しろさんかく0円.1 billion
Total water supply (including small-scale water supply) Electricity
Industrial-use water Gas
Transportation Other
Hospitals Sewage business
Financial Status of Businesses of Local Enterprises of Disaster-Struck Organizations
Settlements by Businesses of Local Enterprises of Disaster-Struck Organizations32Local Public Finance, 2017 –Illustrated–32Promotion 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 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
Outline of the Act on Assurance of Sound Financial Status of Local Governments
33 White Paper on Local Public Finance, 201733General
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, etc.
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)
2 Status of the Ratios for Measuring Financial Soundness and Financial Shortfall Ratio051015202524221119138
2 0 2 0 0
FY2007 FY2008 FY2009 FY2010 FY2011 FY2014 FY2015
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 standard
The following graph shows the trend in the number of local governments
with a real deficit.
Based on FY2015 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.
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.
Targets of the Ratio for Measuring Financial Soundness
Real Deficit Ratio34Local Public Finance, 2017 –Illustrated–34Promotion of the Soundness of Local Public Finance0102030405060708071112213931179 7 6 1 0
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 FY2015
FY2014
FY2013
FY2012
The following graph shows the trend in the number of local governments with a
consolidated real deficit.
Based on FY2015 account settlements, there were no local municipal governments
with a consolidated real deficit (i.e., with a consolidated Real deficit ratio that
exceeds 0%), and no local municipal governments had a Consolidated real deficit
ratio that equals or exceeds the Early financial soundness restoring standard.
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.43633220139912306411751
114 16314112912010100200300400500
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
(No. of local governments)
FY2007 FY2008 FY2009 FY2010 FY2011 FY2015
FY2014
FY2013
FY2012
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 FY2015 account settlements, there
was one local municipal government with a
Real debt service ratio equal to or exceeding
the financial rebuilding standard.
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.
Consolidated Real Deficit Ratio
Real Debt Service Ratio
35 White Paper on Local Public Finance, 201735012345653 3
2 2 2
1 1 1
FY2007 FY2008 FY2009 FY2010 FY2011 FY2015
FY2014
FY2013
FY2012
(No. of local governments)
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 FY2015 account settlements, there was one local
municipal government with a Future burden ratio equal
to or exceeding the Early financial soundness restoring
standard.
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.0501001502002503001562566120249
162 38
119 36882069186013581047FY2007 FY2008 FY2009 FY2010 FY2011 FY2015
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 standard
The following graph shows the trend in the number of local public enterprises with a
financial shortfall.
Based on FY2015 account settlements, there were 47 local public enterprises with
a financial shortfall (i.e., with a Financial shortfall ratio that exceeds 0%). Of these,
10 local public enterprises had a Financial shortfall ratio that equals or exceeds the
Management soundness standard.
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.
Future Burden Ratio
Financial Shortfall Ratio36Local Public Finance, 2017 –Illustrated–36http://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)
Fax: +81-(0)3-5253-5650
http://www.soumu.go.jp
All Rights Reserved
FY2015 Settlement
White Paper on
Local Public Finance, 2017
– Illustrated –