TOKYO METROPOLITAN GOVERNMENT (TMG)
Bureau of Finance

The Financial Position of the TMG and TMG Bonds

Bureau of Finance, Tokyo Metropolitan Government
April 2008 Contents

I. Introduction

2

II. Finances

7

III. TMG Bonds

19

IV. Topics

27

Note 1: Unless otherwise noted, figures in this material until FY2006
indicate settlement amounts; figures for FY2007 are final adjusted
budget amounts, and figures for FY2008 are initial budget amounts.
Note 2: Figures based on the initial budget of the general account for
FY1994, FY1999, and FY2003 are also the actual budget figures after
adjustment.
Note 3: Figures have been rounded off to the unit indicated without theadjustment of fractional amounts. Therefore, the sum of these figures
may not coincide with totals shown..

TOKYO METROPOLITAN GOVERNMENT

1

I. Introduction

TOKYO METROPOLITAN GOVERNMENT (1) Share in Japan ①

Population(as of October 1, 2006)

Area

2,187km2
0.6%

12.66 million
9.9%

GDP (FY2005)

92 trillion yen
18.3%<Referential Exchange Rate>
GBP1.00=JPY238.90
EUR1.00=JPY164.84
as of October 9, 2007

Source: “2005 Population Census ” and “October 1, 2006 Current Population Projections” by Statistics Bureau, Ministry of Internal Affairs andCommunications; “Annual Report of National Accounts” by Economic and Social Research Institute, Cabinet Office, Government of Japan; “FY2005
Annual Report on Prefectural Accounts” by Bureau of General Affairs, Tokyo Metropolitan Government;

TOKYO METROPOLITAN GOVERNMENT3 (1) Share in Japan ②

No. of Employees (2005)

8.21 million
13.3%

No. of Foreign Corporate Offices(2006)

Annual Sales of Information
Services (2006)

1,157 Offices
52.8%

8 trillion yen
58.3%

Source: “2005 Population Census ” and “2006 Survey of Offices and Corporate Statistics” by Statistics Bureau, Ministry of Internal Affairs andCommunications; “2006 Survey of Selected Service Industries” by Economic and Industrial Policy Bureau, Ministry of Economy, Trade and Industry

TOKYO METROPOLITAN GOVERNMENT

4 (2) Overseas Comparison ①

Productive Population Ratio(People Aged 15 to 64)

Population of Major Cities
0

5,000

（thousands）
15,00010,00012,659Met Tokyo
Met
Tokyo

11,510Beijing

10,839

Sao Paulo
Seoul

10,024

Moscow

8,297

New York

8,008

London

7,074

Rome

2,542

Paris

2,125

Source: Tokyo: “October 1, 2006 Current Population Projections” by
Statistics Bureau, Ministry of Internal Affairs and Communications
Overseas cities：World Statistics 2007 by Statistics Bureau, Ministryof Internal Affairs and Communications (Dates for population
censuses vary according to city but range from 1996 to 2003)

TOKYO METROPOLITAN GOVERNMENT

Rank

Country(Year）

1
2
3
4
5
6
7
8
9
10

Korea
Czech
RussiaChina
PolandUkraineRomania
ThailandCanadaSpain(2003)(2003)(2001)(2000)(2003)(2003)(2003)(2002)(2003)(2003)

17
19
21
22
24
25
27

Germany(2003)
Australia(2002)
USA(2003)
Italy(2003)(2005)Japan
United Kingdom (2003)
France(2003)

Ages 15 to 64
（％）
71.44
70.84
70.28
70.00
69.62
69.13 Met Tokyo (2005) 69.14
68.99
68.97
68.88
68.65
67.36
67.09
66.76
66.68
65.82
65.69
65.05

Source: UN Demographic Yearbook 2000, 2002, 2003
2005 Population Census by Statistics Bureau, Ministry of Internal
Affairs and Communications5 (2) Overseas Comparison ②

GDP（Nominal）
0

200

400

600

Per Capita GDP (Nominal)（USD 1billion）
1,000
1,200

800

Canada

1,130

Spain

1,124

Met
Met Tokyo
Tokyo

837

India

800

Brazil

796

Korea

788

Russia764
708

Australia
Belgium

371*2005 calendar year (FY2005 for Met Tokyo)
Conversion rate for Met Tokyo:$1 = 110.22 yen
Source: World Statistics 2007 by the Statistics Bureau, Ministry ofInternal Affairs and Communications
FY2005 Annual Report on Prefectural Accounts by Bureauof General Affairs, Tokyo Metropolitan Government

TOKYO METROPOLITAN GOVERNMENT

0

1

2

3

（USD 10,000）
5
6
7

4

Met
MetTokyo
Tokyo

6.66

USA

4.19

United Kingdom

3.74

Japan

3.57

France

3.52

Canada3.50

Germany

3.38

Korea

1.65

*2005 calendar year (FY2005 for Met Tokyo)
Conversion rate for Tokyo: $1 = 110.22 yen
Source: World Statistics 2007 by the Statistics Bureau, Ministry of Internal
Affairs and Communications; however, population figures for Met Tokyo
were calculated from FY2005Annual Report on Prefectural Accounts and2005 Population Census by Statistics Bureau, Ministry of Internal Affairs
and Communications

6II. Finances

TOKYO METROPOLITAN GOVERNMENT (1) The Financial Scale of TMG
 The budget of the general account is 6.856 trillion yen* (total annual expenditure).
 In addition to its general account, TMG has 17 special accounts and 11 public enterpriseaccounts, with an aggregate budget of 13.3855 trillion yen*.
*FY 2008 initial budget basis

Financial Scale of TMG(FY2008 Initial Budget)

Comparison of TMG’s Financial Scale（FY2008 Initial Budget）（ trillion yen）

Public Enterprise
Accounts
2.1978 trillion yen General Account
6.856 trillion yen

All Accounts in Total
13.3855 trillion yen
Special Accounts
4.3318 trillion yen

TOKYO METROPOLITAN GOVERNMENT

Japan

83.0613

Fiscal budgets of local gov'ts

83.4014

Metropolitan Tokyo

6.8560Belgium（2006）

7.0401

New York City（2008）

6.4487*Figures for Japan and Metropolitan Tokyo are from the initial
General Accounts budget (Conversion rate is the rate current on
January 4, 2008)8 (2) Financial Characteristics of TMG ①Annual Revenue
 Flexibility in fiscal management has been secured with local taxes accounting for 80% of generalaccount revenue, and a high ratio of independent revenue* at 89.9%.
* Independent revenue means a revenue which a local government can raise on its own without depending on the central
government, i.e., local taxes, usage charges, charges for services, commission, property revenue and miscellaneous revenue, etc.

Breakdown of the TMG’s Revenue(FY2007 General Account Budget)
Special Local
National Treasury Municipal Bonds
Government Grants Disbursements
3.9%
1.0%
5.1%
Local Transfer Tax
0.1%

Others
9.3%

Breakdown of All Local Governments’ Revenue(FY2007 Local Government Fiscal Plan)
Municipal Bonds
11.5%
National Treasury
Disbursements
12.1%
Local Government
Grants18.5%

Others8.0%

Local Taxes
48.5%

Local Taxes
80.4%
Special local
government grants, etc.
0.6%

Independent Revenue Ratio（＝Ratio（＝Local Taxes＋
Taxes＋Others＊ ）
89.9％
89.9％

Local transfer tax
0.8%

Independent Revenue Ratio（＝Ratio（＝Local Taxes＋
Taxes＋Others)
56.5％
56.5％

* Grants-in-aid and special grants are not included in “Others”.

TOKYO METROPOLITAN GOVERNMENT

9 (2) Financial Characteristics of TMG ① Annual Revenue – Metropolitan Tax Revenue
 The two corporate taxes (Corporate Business Tax and Corporate Resident Tax), which are exposed toeconomic fluctuations, account for more than 40% of revenue sources.
 However, structure remains unstable, as TMG in the past recorded a decline of 1 trillion yen in only a
3-year period.
 Increase for the FY2008 budget will remain at 0.3% compared to the FY2007 final adjusted budget.
Breakdown of Metropolitan Tax Revenue

Trends in Metropolitan Tax Revenue and Rate of Collection（trillion yen）
5.8

100
5.49 5.51
97.8

Metropolitan Tax Revenue (indicator at left)

Others
16.2％

5.1

97
4.85

Individual
Residents' Tax
15.1%

2 Corporate
Taxes
46.4％

Fixed Assets Tax &Urban Planning Tax
22.3％

About 1 trillion yen
4.4

94

3.7

3.86

91

Rate of Collection(indicator at right)

90.2
3.0

* FY 2008 initial budget

88
89

90

91

92

93

94

95

96

97

98

99

00

01

02

03

04

05

06

07

08

（FY）

TOKYO METROPOLITAN GOVERNMENT

10 (2) Financial Characteristics of TMG ② Annual Expenditure Ratio of expenditure for public bonds and investment expenses are lower than those of theaggregate for all local governments in Japan.

Breakdown of TMG’s Expenditure（FY2008 General Account Budget）

Others48.6%

Payroll-relatedExpenses
24.6%

Breakdown of All Local Governments’ Expenditures（FY2008 Local Government Fiscal Plan）

Others36.4%

Payroll-relatedExpenses
26.6%

Expenditure for
Public Bonds
9.7%

Public Enterprise
Accounting
Money Drawn, etc.
6.4%

TOKYO METROPOLITAN GOVERNMENT

Investment
Expenses
10.7%

Expenditure for
Public Bonds
15.8%

Public Enterprise
Money Drawn
3.2%

Investment
Expenses17.8%

11 (2) Financial Characteristics of TMG② Annual Expenditure – Initiatives in administrative and fiscal reform The recovery in financial soundness of TMG today, in large part, results from accumulated efforts at administrative andfiscal reform.
 TMG remain committed to thorough restructuring and will continue to review internal efforts and measures. Accelerate
financial structure reforms through review of administrative operations and individual balance sheets.

Trends in General Expenditure

Trends in the Number of Staff（Indices）
150
FY1989＝100
140（Indices）
105
FY1988＝100

139
125

130
100

120

All Local Governments
95
TMG

National Government（General Account）

110

92

Local Government
Fiscal Plan

100

90

87
86

85

85

90

TMG
（General Account）

80
70

80

88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08

元89 290391 492 593 694 795 896 99710
981199120013011402150316041705180619072008（FY）*Based on the initial budget draft

TOKYO METROPOLITAN GOVERNMENT

（FY）

12

 (2) Financial Characteristics of TMG ③ Metropolitan Debt
 The dependence on bond issuance and the level of bond outstanding are being maintained at an extremely
low level in comparison with the national government and the fiscal planning of local governments.
 By curbing issue of refinancing bonds for FY2008, redemption amounts can be leveled out, shrinking bondbalances and lightening the fiscal load for the future.
Comparison of Dependence on
Trends in Metropolitan Debt Outstanding
Bond Issuance and Bond Outstanding(All Accounts)(Unit: yen)

National Government Local Government

TMG

Category（General Account）（General Account）

Fiscal Plan

3.9％

30.5%

11.5%

6.4trillion（1.2x）

553trillion（10.3x）

197trillion（4.9x）

Dependence on
Bond issuance
Bond Outstanding（compared with General
Account Tax Revenue）（trillion yen）
Public Enterprise Accounts
14
140,000
Special Accounts

12
120,000

General Account

100,000
10*Based on FY2008 initial budget

Change in Sinking Fund and Reserve Deficit Amounts(General Account)（billion yen）
1,000
800

8
80,00060,000
6
40,0004

Sinking Fund Balance600

2
20,000

400
200

00

0
△ 200

Reserve Deficit(Cumulative)

△ 400
△ 600
96

97

98

99

Extinguished
00

01

02

03

TOKYO METROPOLITAN GOVERNMENT

04

05

06

07

08 （FY）

92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 （FY）
* The Level of Public Enterprise Account is based on Mar 31 of every year
（excluding NTT bonds）

13

 (2) Financial Characteristics of TMG ④ Fund Balances Concern going forward that an increase in fiscal demands and a drop in tax revenues will make thesituation surrounding metropolitan finances even more difficult.
 A proactive use of funds is needed to build a fiscal foundation that can support the necessary
government services.
Change in Fiscal Reconciliation Funds（trillion yen）
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0
99

00

01

02

03

04

05

06

07

08

（FY）

*FY2007 reflects final adjusted budget , FY2008 is based on initial budget.

TOKYO METROPOLITAN GOVERNMENT

14 (3) Financial Position of TMG
 With the clearing of revenue shortfalls and establishment of a solid trend toward surpluses,
restructuring of metropolitan finances is at an end point.
 It is time to move to a new stage of policy development that looks toward Tokyo’s future.
Trends in Real Balance（General Account Results）

Changes in Temporary Funding Measure Amounts（100 million yen）
4,500

（100 million yen）

4,216

1,366

1,500
1,000
543

3,000

500
1,751
1,438

1,500

0

Revenueshortfalls
discharged

0

△ 111

△ 255

-500
-1,000

99

00

01

02

03

04

05

06

△ 1,068（FY）

Temporary Funding Measures in Tokyoz Delay adding to Sinking Funds
z Borrow from other accounts

z Spend down funds
z Issue Retirement Money Bonds

TOKYO METROPOLITAN GOVERNMENT-1,500
98

99

00

01

02

03

04

05

06

（FY）

15

 (4) FY2006 Results of Accounts ①Ordinary Accounts
 The real balance is in the black at 137 billion yen, and has been in the black for two consecutive
years.
 Total metropolitan tax revenue increased by 7%, thanks to favorable corporate earnings.
 Personnel costs rose 0.2% due to a rise in retirement benefit payments.
 Public debt payments rose 33.5% due to efforts to eliminate a reserve shortage in sinking funds
arising from past temporary financial measures.
Ordinary Account Results(100 million yen, %)64,334

Increase/
Decrease
3,944

Rate of
Change6.1

49,271

46,0273,244

7.0

Annual expenditure

65,16462,202

2,962

4.8

General expenditure

42,155

41,634521

1.3

Personnel cost
Public debt payments

15,92815,894

34

0.2

9,655

7,231

2,424

33.5

Formal balance
Fiscal revenue tobe carried forward
Real balance

3,113

2,132

982

-

1,744

1,603

141

-

1,370

529

841

-

Division

FY2006

FY2005

Annual revenue

68,278Metropolitan tax

TOKYO METROPOLITAN GOVERNMENTzOrdinary Accounting− a conceptual, statistics-based type ofaccounting which was restructured
to be consistent with the accountingof local municipal entities inaccordance with standards set by the
Ministry of Internal Affairs andCommunications− 14 special accounts were added to
the general account; using thisaccounting system, the net total iscalculated eliminating overlap
between accounts.

16 (4) FY2006 Results of Accounts ② Public Enterprise Accounts
 Of public enterprise P/L accounts for FY2006, hospitals account were in the red.
 While helping enterprises to reach their economic potential, we also stand by the basic principle ofpromoting the public welfare, and continue to work toward management reforms and sustained
improvement in services.
Public Enterprise Account Results(100 million yen)P/L Statement
Account
Hospitals
Central wholesale market
Urban redevelopment
Waterfront area development
Ports and harbors
Transportation
SubwayElectricity
Waterworks
Industrial waterworks
Sewage system
Total
TOKYO METROPOLITAN GOVERNMENT

Balance Sheet

Current
Balance

Current
Net Income

Debenture
Capital

△27
2
2
141
31
10
31
1
573
0
273
1,037

△1
2
2
16
31
13
26
1
583
0
273
946

897
932
371
4,729
58
214
6,181
5,325
0
24,91043,618EquityCapital

799
3,050
1
6,065
3,284
337
3,522
24
12,072
227
14,90244,283

Surplus

1
2,360
7
574
135
1,108
172
40
5,416
120
24,85034,78317 (5) Financial Indicators
Trends in Key Financial Indicators(%)

Details

FY2002
Results

FY2003Results

FY2004
Results

FY2005Results

FY2006
Forecast

Ordinary
Balance Ratio

Measures the flexibility of thefinancial structure; the lower it
is, the more flexibility there is.

96.9

97.9

92.6

85.8

84.5

(99.4)(103.1)(102.0)(99.0)

Debt Expenditure
Burden Ratio

The ratio of general financial
resources appropriated to debt
expenditure to the entire amountof general finances

12.6

12.0

12.9

12.3

(19.8)(19.8)(19.9)(19.3)

Financial
Capability Index

The higher the index, the morefinancial leeway there is.

1.034

1.044

1.060

1.107

(0.41)(0.41)(0.41)(0.43)

Real Debt
Service Ratio

Ratio which indicates the ratio ofprincipal redemption money formunicipal bonds to the standard
financial budget, etc.

‐

‐

‐

17.1

15.5

1.215

15.2

(14.9)*Figures in parentheses indicate the prefectural average.

TOKYO METROPOLITAN GOVERNMENT

18

III. TMG Bonds

TOKYO METROPOLITAN GOVERNMENT (1) Issue Plans for FY2008

Plans for Public Offering for FY2008（ 100 million yen ）

2008
Apr

May

Jun

Jul

Aug

2009
Sep

Oct

Nov

Dec

Jan

Feb

Mar

FY2008Total

10-year bonds

300 300- 300- 300- 300- 300- 300 - 300 - 300 - 300 - 300 - 300 -- 4,000

20-year bonds

3 to 4 times a year, about 20 to 30 billion yen each time

- 800

30-year bonds

once a year, about 10 to 20 billion yen each time

Foreign Bonds

Once a year, about 50 billion yen

100 - 200
500
Total up to -5,500* A change in circumstances may result in a change in the planned issue amountTOKYO METROPOLITAN GOVERNMENT

20 (2) Foreign Bonds
 Obtained Moody’s rating on February 1, 2007, and issued foreign bonds in January 2008.
 Expect to continue issuing these bonds from next year onward.

Foreign Bonds without Government Guarantee

Category

Issue Date

Signing Date

Issue AmountNo. 6 Euro-Euro Bonds Jan 31,2008 Jan 29,2008 318 million euros

Category

Maturity Coupon Rate
27yrs

4.900%

4.909%

99.867%

Aaa

Yield toIssue Price
Subscribers

Issue Date

Signing Date

Issue AmountNo. 2 Euro-Euro Bonds Nov 8,2004

Nov 1,2004

160 million euros

30yrs

5.070%

5.074%

No. 3 Euro-Euro Bonds Jun 2,2005 May 31,2005 294 million euros

27yrs

4.260%

4.260% 100.000%

No. 4 Euro-Euro Bonds Nov 29,2005 Nov 24,2005 150 million euros

30yrs

4.270%

4.274%

99.933%

No. 5 Euro-Euro Bonds Jun 21,2006 Jun 19,2006 344 million euros

27yrs

4.700%

4.709%

99.864%

TOKYO METROPOLITAN GOVERNMENT

Maturity Coupon Rate

Yield toIssue Price Credit Ratings
Subscribers

99.940%21

 (3) Liquidity and Stability of TMG Bonds
 TMG bonds boast a high share in the local government bond market in terms of issue amount andoutstanding balance.
 Metropolitan Tokyo’s independent revenue sources, such as local taxes, account for the majorpart of its revenue, enabling it to secure financial resources for the stable repayment of the TMG
bonds.
Independent Revenue Sources(FY 2008 General Account Budget)

Public Offering of Local Government
Bonds (FY 2006)
TMG Bonds
740 billion yen(13.4%)【Issue Amount】

89.9%

Total Issue Amount
5.5271 trillion yen

BIS Risk WeightTMG Bonds
7.1750 trillion yen(21.4%)【Outstanding Balance】

Outstanding Balance
33.5901 trillion yen* Excluding retail targeted bonds

and foreign bonds

TOKYO METROPOLITAN GOVERNMENT

Government
Bonds

GovernmentGuaranteed
Bonds

TMG
Bonds

FILP
Institutional
Bonds

Electric
Power
Bonds

Bank
Debentures

0%

0%

0%

10%

20%

20%

* Zero ratings are for domestic investors in Japan.
For overseas investors, will depend on confirmation of relevant
regulatory authority in each country.
(However, ordinary municipal bonds are from 10% to 20%.)22 (4) Initiatives in Marketing ① Obtaining Credit Ratings
 TMG bonds obtained a credit rating on February 1, 2007z Credit Rating Company: Moody’s Investors Servicez Details: Foreign Rating: Aaa / Stable,
Local Currency Rating: Aa1 / Stable Obtained additional ratings on March 26, 2008z Credit Rating Company: Standard & Poor’s Rating Services
z Details: Long-Term Issuer Credit(Both foreign and domestic currency denominated) AA / Stable Currently, considering obtaining additional ratings in FY 2008
 Effects of obtaining credit ratingsz Makes it possible to broadcast Tokyo’s financial strength internationallyz Expanded investor basez Improvement in metro bond issuing terms (lower costs)

TOKYO METROPOLITAN GOVERNMENT

Effects are magnified when
multiple ratings are obtained23 (4) Initiatives in Marketing ②Enhancing IR Activities
 Issuance strategy focusing on communication with investorsz About 90% of fund raised through TMG bonds are from private sector.
z Diverse products, regular issuance of 10-year bonds, improvement in pricing methodz Investor visits, symposiums, seminars, sales meetings, etc.
z Website for investors (TMG Website, including English)
 Proactive overseas IR activities as the only municipal government which issues foreign bondsz Participated in the Japan Capital Markets Summit (London) sponsored by Euro Week magazine in
May 2007z Conducted Tokyo’s first IR tour in Europe in October, 2007
IR Results （FY2007）
Event / Business

Details / No. of Times

Investor Visits

33 companies and groups (including overseas investors)

Participation in Symposium Meetings

13 (including sales meetings)

Japan Capital Markets Summit

About 200 finance industry-related attendees at London seminar
In addition, individual visits to investors (3times)

IR Tour in Europe

Held investor meetings in London, Paris, and Frankfurt,
As well as visits to individual investors (6)TOKYO METROPOLITAN GOVERNMENT24 (4) Initiatives in Marketing ②Enhancing IR Activities Redesign of investor site in January, 2008 (TMG Bond Website) Work to improve information depth and delivery, while also enhancing content of the English
language site.
【English Page】 http://www.zaimu.metro.tokyo.jp/bond/en/en.html

TOKYO METROPOLITAN GOVERNMENT

25

 (4) Initiatives in Marketing③Tax Exemption Measures for Book-entry transfer Muni Bonds
 Were applied to interest income arising from municipal bonds in book-entry form on and after 1st
January, 2008
X

FY2007 Tax Reform included the tax exemption measures related to interest on book-entry
transfer municipal bonds held by nonresident individuals or foreign corporations

X

Interest on book-entry transfer municipal bonds held by nonresident individuals or foreign
corporations will be exempt from income tax, subject to submission of the Application Formfor Withholding Tax Exemption

X

Those who have already submitted the Application Form for Withholding Tax Exemption for
JGBs in book-entry format shall be deemed to have submitted the Application Form forWithholding Tax Exemption for municipal bonds in book-entry format under certain
conditionsz

Interest income from coupon-bearing bonds held by nonresident individuals or foreign
corporations is generally subject to 15% withholding tax.

z

Book-entry system for municipal bonds started in January 2006, and since then, almost all themunicipal bonds have been issued in book-entry format. Most of the municipal bonds issued
prior to the introduction of the book-entry system have also been consented to be reformatted
into the book-entry format.

zBook-entry system for municipal bonds is operated by Japan Securities Depository Center, Inc.
(JASDEC), while the one for JGBs is operated by BOJ.

TOKYO METROPOLITAN GOVERNMENT

26

IV. Topics

TOKYO METROPOLITAN GOVERNMENT（1）”Tokyo in 10 Years” : A Model for the 21st Century City
 Established in December, 2006, to set forth the city’s strategy for the measures it will take toachieve a vision for the city in its bid for the Olympics in 10 years.
 In December, 2007, established a program to be executed over the next 3 years
Eight Goals in the Plan
1. Restore Tokyo’s beauty as a city of water and greenery
2. Transform Tokyo through the three loop roads
3. Become the city with the lowest environmental load in theworld
4. Strengthen Tokyo’s disaster preparedness to enhancecredibility
5. Create the world’s first urban model for a super-aging
society

Program to be executed in 2008 toward the“Tokyo in 10 Years” Vision
 Objectives►The rapid and assured implementation of
measures towards achieving the 8 goals of the“Tokyo in 10 Years” plan.
►Roll out innovative efforts to achieve the“21st Century City” model, for the 2016
Tokyo Olympics and beyond.
 Actions

6. Make Tokyo more prominent in terms of culture, tourism,
universal design and industry►Create an action plan for the 3-year period of
the biggest push (2008-2010)

7. Create a society where motivated individuals can pursue
their ambitions►Generate a broad regional movement
throughout all of Tokyo.

8. Promote sports to provide dreams to children
TOKYO METROPOLITAN GOVERNMENT28

（2）Bid for the 2016 Tokyo Olympics
The Value of Hosting the Olympics
z Through sports, provide dreams and hopes to the people, and vitality to the city.
z Propose a new urban model, breathing new life into the global environment.

Schedule

2008

Jan

Submit application file to the IOCJun

IOC will select the candidate cities

Aug

Beijing Olympics (Sept.:Paralympics)

Feb

Submit candidacy file to the IOC

2009

Expenses and Economic Effects
z Funds for Olympic Bid Promotional Activities
 Bid expenses ：5.5 billion yen （Tokyo to bear about 3.1 billion yen）
 Movement promotion expenses ：9.5 billion yen （Tokyo to bear about 6.9 trillion yen）

z Olympic Preparation Fund
400 billion yen set aside

Oct

Host city is to be chosen by the IOC

TOKYO METROPOLITAN GOVERNMENT（FY 2006 to FY 2009）＜Note＞
Economic ripple effects ：about 3 trillion yen（rough estimate）*Based on productivity amounts
induced nationwide.

29

（3）Recent Developments in Regional Tax Resource Issues
 Under the stated goal of correcting unbalances in regional tax revenues, enacting tax reforms that will
require Tokyo and other cities to shift a part of their fiscal resources to other regions.
 A portion of the corporate tax, a fundamental tax for regional governments, will be split off, converted tonational control, and redistributed to other regions.
【Basic Framework】＜Current＞
Corporate
Business Tax(Regional Tax)
Collected in 2006
5.4 tril. yen

Prefectural gov’ts.
Collect as before

Part of revenue andincome tax nationalized
2.6 tril. yen＜After Reforms＞
Corporate Business
Tax(Regional Tax)
New
Regional Special
Corporate Tax(National Tax)

Grant to prefectures basedon population (1/2) andnumber of employees (1/2)
New

Pay out

National
Regional Corporate
Government Redistribute Special Tax Grant Amount of Effect on TMG (Estimate)z FY2009 → Approx. 280 bil. yenz FY2010 → Approx. 320 bil. yen

Approx. 600 bil. Yendrop in revenue TMG’s View and Approachz A strictly interim measure, in place only until real tax structure reforms, including the consumption tax, are enacted
z Need to move quickly to enact real reforms of the tax revenue structure that will enable regional governments toachieve true independencez Use working-level discussions (set up in December, 2007, in talks between Governor Ishihara and Prime Minister
Fukuda) to ensure critical measures are implemented swiftly
Ex. 13 key measures, including progressing with conversion of Haneda Airport to full international operations
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 Website Address and Other Details
 Website address of Tokyo Metropolitan Government (TMG):
http://www.metro.tokyo.jp/ENGLISH/index.htm
 Website address for TMG Bonds: http://www.zaimu.metro.tokyo.jp/bond/en/en.html
 E-mail Address:
S0000063@section.metro.tokyo.jp
Websites of related organizations:z Ministry of Internal Affairs and Communications：
http://www.soumu.go.jp/c-zaisei/chihosai/pdf/070417_IR_English.pdf
z The Japan Local Bond Association: http://www.chihousai.or.jp/english/index.html
zThis data has been prepared to provide information regarding the financial position of the TMG to investors who are
considering the purchase of TMG bonds. It is not intended for sales purposes or as an offer to subscribe to a certain
issue.

z

This material has been prepared using various types of data believed to be reliable at the time. However, this is not aguarantee of its accuracy and completeness. Moreover, while future outlooks and projections indicated in this data
are at present believed to be appropriate for the TMG within the scope presented here, this is not a promise of their
being realized in the future.

z

The main points of the data presented here may be at odds with other reports published elsewhere or which may be
published in the future. Customers are asked to make their own judgments when using this material.

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