# Trends and Issues in Local Public Finance

In aim to realize resident-oriented public administration—i.e., the establishment of “local power” where the residents of a certain region are able to make decisions regarding said region individually—the national government closely reviews its authority and financial resources before delegating them to local governments.

Specifically, based on the principle of subsidiarity—where decentralization reforms are carried out focusing on lower-tier municipal bodies, which are the most accessible form of government to residents, administrative work and projects that cannot be handled by such lower-tier municipal bodies is handled by larger, regional local governments, and administrative work and projects that cannot be handled by those regional local governments is handled by the national government—local power is promoted by delegating authority and financial resources to local governments in accordance with their capacity and size and by such measures as dissolving double administration.

## Promotion of Decentralization Reforms

## Bill regarding the Development of Related Laws for Promoting Regional Power Reform

## (1) Establishment of the Regional Power Strategic Council (partial amendment to the Act for Establishment of the Cabinet Office)

Definition of 'regional power reform': Based on the principles of the Constitution of Japan, these reforms are to ensure that the administrative affairs most accessible to residents shall be widely overseen by local governments in an autonomous and comprehensive manner, and to allow local residents the power to address regional issues using their own judgment and responsibility.
Survey and deliberate on basic reform plans and important matters, promote the implementation of measures in response to important matters
Important council of the Cabinet Office: Up to 15 persons Chair: Prime Minister
Members: Chief Cabinet Secretary, Minister of Local Power Reform, other ministers designated by the Prime Minister, other experts appointed by the Prime Minister, etc.
·Executed on the day stipulated by Cabinet order (within three months of public distribution)
·A review is to be conducted within three years following the law's execution from the perspective of further advancing reforms

## (2) Revision of obligations and limits (partial amendment to related laws)

Amendments will be collectively made to 41 related laws based on the Decentralization Reform Promotion Plan (approved by the Cabinet on December 15, 2009).

## 2 Bill regarding Venues for Discussion between the National and Local Governments

Construction /operation	·National-level members: Chief Cabinet Secretary, Minister of Local Power Reform, Minister of Internal Affairs and Communications, Minister of Finance, other ministers designated by the Prime Minister (the Prime Minister appoints the Chair and acting chair)·Local-level members: Representatives from the six major local government groups (one person from each) <select Deputy Chair>·Temporary members: ministers that are not members, local government mayor/governors and prefectural assembly chairmen·The Prime Minister can always attend meetings and comment
Matters considered important from the following list·Matters concerning the division of roles between the national and local governments·Matters concerning local administration, local financial administration, regional tax systems, and other matters concerning local governments·Items considered to affect local governments from among policies concerning economic and fiscal policy, policies regarding social security, education, and the development of social infrastructure, and matters concerning other national policies
·Prime Minister (The Prime Minister shall be summoned a certain number of times each fiscal year, and can be summoned for special sessions as well.)·Members can request that the Prime Minister be summoned
Sectional meetings	·The council can hold sectional meetings to survey and consider special matters
·The Chair shall draft a report that includes an overview of meetings and submit it to the Diet without delay following the conclusion of discussions
·Members and temporary members must comply with matters that were agreed on within discussions

## Revisions of Obligations and Limits

## Matters Subject to Amendment

The following items are subject to amendment, from among those local administrative affairs that have been made obligatory and given limits via laws and ordinances, and have been deemed to lie outside of the independent decision-making scope according to regulations:

① Criterion for managing the establishment of facilities and public goods

② Approval, permission, and authorization of discussions and agreements

③ Drafting, procedures, etc. for plans, etc.

## Collective amendment of related laws

## Revise obligations and limits

in order to enhance the autonomy

of local governments

and to increase their independence

## Post Amendment

For example,

$ ^{1} $ ‘Prescribe criterion using regulations in place of criterion established by the national government in order to exercise local autonomy

$ ^{2} $ 'Abolish or weaken the involvement of the national government

$ ^{3} $ 'Abolish the drafting duties of plans, etc.

## Overview of Amendments (example)

○ Criterion regarding the equipment and operations

○ Maintenance and revenue criterion for public housing (Act on Public Housing)

☐ Technical criterion for the structure of roads (however, excluding criterion for design vehicles, etc.) (Road Act)

Delegate these

to local regulations

' (National criterion changed to "less rigid criterion")

☐ Require the notification of approvals made by prefectural boards of education regarding the abolishment of municipal kindergartens, etc. (School Education Act)