## Revenues

## Where do the funds for local government activities come from?

## Revenue Breakdown

The revenue of local governments comes mainly from local taxes (about 36%), national treasury disbursements, local allocation tax, and local bonds, in that order.

## General Revenue Resources

Revenue resources for which the use is not specified, such as local taxes and local allocation tax, are called general revenue resources. Here, the total of local taxes, local transfer taxes, local allocation tax, special local grants, etc., is treated as general revenue resources. It is important for local governments to ensure sufficient general revenue resources in order to handle various administrative needs properly.

### Net total ¥98,365.7 billion

Other revenue resources ¥16,442.6 billion (16.7%)

Local bonds ¥12,396.0 billion (12.6%)

National treasury disbursements ¥16,765.3 billion (17.0%)

### Prefectures total ¥50,968.2 billion

Other revenue resources ¥8,975.1 billion (17.6%)

Local bonds ¥7,755.7 billion (15.2%)

National treasury disbursements ¥8,516.8 billion (16.7%)

### Municipalities total ¥53,554.7 billion

Other revenue resources ¥11,887.6 billion (22.2%)

Local bonds ¥4,666.9 billion (8.7%)

National treasury disbursements ¥8,248.5 billion (15.4%)

## General revenue resources

¥52,761.8 billion (53.6%)

Local taxes ¥35,183.0 billion (35.8%)

Local transfer tax ¥1,296.6 billion (1.3%)

Special local grants ¥462.0 billion (0.5%)

Local allocation tax ¥15,820.2 billion (16.1%)

## General revenue resources

¥25,720.7 billion (50.5%)

Local taxes ¥16,508.8 billion (32.4%)

Local transfer tax ¥810.3 billion (1.6%)

• Special local grants ¥216.0 billion (0.4%)

• Local allocation tax ¥8,184.1 billion (16.1%)

Other general revenue resources ¥1.4 billion (0.0%)

#### General revenue resources ¥28,751.7 billion (53.7%)

Local taxes ¥18,674.1 billion (34.9%)

Local transfer tax ¥486.3 billion (0.9%)

Special local grants ¥246.0 billion (0.5%)

Local allocation tax ¥7,636.1 billion (14.3%)

Other general revenue resources ¥1,709.3 billion (3.2%)

Local transfer tax: Collected as a national tax and transferred to local governments. Includes local gasoline transfer tax, etc.

Special local grants: Includes such things as the special child allowance in response to the increased local burden as a result of the expanded child allowance system in FY2006 and FY2007.

Local allocation tax: An intrinsic revenue source shared by local governments in order to adjust imbalances in tax revenue among local governments and to guarantee revenue sources so that local governments in every region can provide a consistent level of administrative services. Calculated as a fixed ratio of five national taxes. (See pg.11, "4. Local Allocation Tax.")

National treasury disbursements: A general name for subsidies, etc., disbursed from the central government to local governments for contributions, commissioning expenses, incentives for specific measures, or financial assistance.

Local bonds: The debts of local governments for which redemption continues for more than one fiscal year.

Notes:

1. The figures here are mainly for ordinary accounts. (For the accounts of public enterprises, such as water supply and sewerage businesses, transportation businesses, and hospitals, see “Local Public Enterprises.”)