Silviase/jgov_v1.4_full_ann huggingface dataset:
tivity gains. In a questionnaire query about initiatives to utilize ICT investments to make productivity gains, the top answer, from about 40 percent of the respondents, was “revise internal organizations,” followed by “revise platforms for joint ventures or cooperation with other enterprises” and “train ICT personnel” (Figure 1-2-2-3).

Figure 1-2-2-2 Prospects for future ICT investment (by category of investment)

(Source) "Study Report on a Structural Analysis of the ICT Industry in the IoT Era and Verification of ICT's Multifaceted Contributions to Economic Growth," MIC (2016)

Figure 1-2-2-3 State of initiatives to utilize ICT investments

(Source) "Study Report on a Structural Analysis of the ICT Industry in the IoT Era and Verification of ICT's Multifaceted Contributions to Economic Growth," MIC (2016)

### 3. Supply-side enhancements: (2) ICT's role in expanding labor participation and improving labor force quality

ICT is giving people more diverse and flexible work options, such as telework, which has led to higher labor participation rates. ICT advances are also an important part of supplying the higher skills and labor quality employers demand. This paragraph’s discussion of ICT’s economic contributions in the labor sector are split into ICT’s role in encouraging labor participation and ICT’s role in improving labor force quality.

## (1) ICT's role in encouraging labor participation

### a. Overview of economic contributions

Labor shortages are one factor limiting our nation's economic growth. There are ongoing initiatives that rely on ICT to help promote labor participation. In the Declaration to be the World's Most Advanced IT Nation (Revised on June 30, 2015), the government indicates its intention to realize a society in which location-independent job opportunities are created, by making use of ICT services including cloud computing, thus providing a diverse and flexible choice of working styles according to the circumstances of individuals including young people and women, senior citizens, caregivers, and people with disabilities, and the content of their work, while continuous efforts are made to spread the concept of
Figure 1-2-4-3 State of online expenditures

(Source) "Results of the Survey of Household Economy," MIC

Figure 1-2-4-4 020 categories and examples

O2O categories	Description	Examples
Online coupons	- Encourage store visits by providing discount coupons via apps or websites
- Technological advances allow coupons to work even more effectively as promotional tools, such as pushing nearby shop information to users based on their location	- Muji Passport by Mujirushi Ryo-hin
- Premium Outlet Shopping Navi by Ami Premium Outlets
- Tamachi Granpark App by Gran-park plaza
Store visit points / check-ins	- Apps and services that automatically give points or other incentives to customers who visit stores
- Store visits are detected using location information from beacons, Wi-Fi, or GPS	- tamecco by Yoshinoya
- Shoplat by Atre
Games and gamification	- Uses the location information of users enjoying a game as a means to promote store visits
- Game design techniques and structures are re-purposed for sales promotions	- Ingress by Lawson
- Nyanko Presidente! by Tsutaya
- Keitai Kunitori Kassen by Toyota Rental Cars
Omnichannels	- A concept that approaches consumers in any location, both online and offline, that removes barriers and interconnects online sales channels and bricks-and-mortar sales channels, which conventionally sell independently	- omni 7 by Seven
- & i Holdings
- Isetan Navi by Isetan's Shinjuku store
Social gifts	- Encourage store visits with a social media gift service that allows social media users to give each other coupons and other perks
- Social media is also used to spread word-of-mouth	- Starbucks eGift by Starbucks Coffee

(Source) "Study Report on a Structural Analysis of the ICT Industry in the IoT Era and

Verification of ICT's Multifaceted Contributions to Economic Growth," MIC (2016)

Figure 1-2-4-5 Changes in everyday household expenditures before and after starting online shopping

(Source) "Study Report Analyzing User Attitudes on New Forms of ICT in Different Countries in the IoT Era," MIC (2016)

### 5. Demand-side enhancements: (4) Capturing global demand

Actively harnessing overseas demand will be essential to our economic growth over the mid-to-long term. Aggressive global expansion by the ICT industry will be a key component in capturing overseas demand for the entire economy, including the knock-on effect for other industries. Expectations are also mounting for inbound
Figure 1-2-5-2 Primary forms of overseas expansion in each ICT layer

(Source) "Study Report on a Structural Analysis of the ICT Industry in the IoT Era and Verification of ICT's Multifaceted Contributions to Economic Growth," MIC (2016)

nerships.

(i) Exports

ICT-related exports in general are the export of ICT equipment and related products. In the four years since 2012, exports of ICT equipment have expanded at a solid pace, according to transitions in exports put together by the Communications and Information network Association of Japan (CIAJ) based on foreign trade statistics. The main factors responsible for this growth have been components, followed by data communications equipment (Figure 1-2-5-3). By region, it is clear exports to Asia have soared since 2012 (Figure 1-2-5-3). From these findings, we surmise the ongoing proliferation of ICT equipment (mobile phones, for example) in Asian markets is driving the growth of Japanese ICT components.

(ii) Direct investments

Corporate acquisitions (M&As) are the primary means of direct outward investment. From the purchaser's side, M&As are used for a variety of purposes and goals, such as expanding a business or gaining a larger market share, diversifying or fortifying a business, entering new business domains, markets, or regions, extending into upstream or downstream layers, and moving into adjacent industries. M&As are increasingly prized by the ICT industry because of dramatic market transformations and deep-seated connections with other industries, especially industries that make use of ICT.

Let’s look at some M&As by Japanese ICT firms. The NTT Group has been moving into a number of countries in the world while aggressively pursuing corporate take-overs in the ICT services and solutions field. The Group’s recent acquisition of an ICT services provider from Dell in the United States is being watched as the Group expands into the U.S. market. The KDDI Group is entering the mobile phone business in Myanmar through a joint business with the Sumitomo Corporation and Myanmar Posts and Telecommunications (MPT). The SoftBank Group purchased Sprint Nextel, the No. 3 mobile carrier in the United States, in July 2013. As these examples highlight, large ICT enterprises are moving into overseas markets, including ICT service markets, with high growth rates, either by setting up local subsidiaries or through M&As.

Figure 1-2-5-3 Transitions in ICT equipment exports (by product category and by destination)

(Source) Communications and Information network Association of Japan (CIAJ)

(Source) Communications and Information network Association of Japan (CIAJ)
Figure 1-3-1-2 Real GDP boost under the ICT growth scenario

(Source) “Study Report on a Structural Analysis of the ICT Industry in the IoT Era and Verification of ICT’s Multifaceted Contributions to Economic Growth,” MIC (2016)

Figure 1-3-1-3 Breakdown of growth factors (ICT growth scenario)

(Source) "Study Report on a Structural Analysis of the ICT Industry in the IoT Era and Verification of ICT's Multilevel Contributions to Economic Growth," MIC (2016)

### 2. Suggestions taken from the verification results

The primary effect of the economic contributions from future ICT advancements will be a rise in productivity in all industries, according to an analysis of enterprise expectations for ICT. The effects from ICT-related capital investment and labor uptake will be small in comparison. However, with growing recognition of the benefits of IoT, big data, AI, and other new forms of ICT, the consciousness of enterprises will change, leading to more active investment in these areas. This, coupled with policy initiatives promoting the further application of these forms of ICT, is anticipated to prompt more capital investment and provision of related services and, thus, magnify the aforementioned effects.

On the other hand, ICT development spurs supply-side enhancements that do not require large amounts of labor. There is concern of supply-only growth with little corresponding growth in demand. If the application of ICT, however, generates the kinds of demand outlined in the previous section (EC, inbound demand, etc.), then well-balanced growth is possible — i.e., supply-side enhancements that do not exacerbate the negative gap between potential GDP and real GDP (Figure 1-3-2-1).

Figure 1-3-2-1 Image of ICT economic contributions (stronger potential supply with corresponding demand)

(Source) “Study Report on a Structural Analysis of the ICT Industry in the IoT Era and Verification of ICT’s Multifaceted Contributions to Economic Growth,” MIC (2016)
cated, as seen in the order of emergence of review sites, online auctions, and the sharing economy. Review mechanisms are being innovated, while also being affected by advances in ICT applications, so they can be applied to a more diverse range of transactions and to add more value to transactions through matching and other means.

### b. Analysis of survey results

A survey was used to ask users of Internet shopping sites, as an example of word-of-mouth and review services, how much they valued reviews when shopping (Figure 1-4-2-3). More than half of the respondents in every age bracket said they valued the reviews to some

Figure 1-4-2-1 Estimate of the monthly consumer surplus per person from music and video streaming services

(Source) "Study Report on ICT Contributions to Social Well-Being Not Seen in GDP"

Figure 1-4-2-2 Total annual consumer surplus from music and video streaming services

Internet user population	Usage rate of music and video streaming services (percentage)	Consumer surplus per person (per month in yen)	Consumer surplus (per year in billions of yen)
20s	12,583,190	86.1	204.2	26.54
30s	15,165,910	77.6	158.4	22.38
40s	17,986,280	71.2	156.9	24.12
50s	14,196,520	70.0	168.1	20.05
60s	13,773,720	58.2	172.6	16.62
Total	109.71

The Internet user population for each age bracket was calculated using the estimated populations by age (in five-year increments) and populations by gender on March 1, 2016 taken from "Population Census" (Statistics Bureau, MIC) and the state of Internet usage by age and by gender taken from the FY 2014 Communications Usage Trend Survey.

(Source) "Study Report on ICT Contributions to Social Well-Being Not Seen in GDP"

Figure 1-4-2-3 Value of reviews and the main focus points when reading reviews

(Source) “Study Report on ICT Contributions to Social Well-Being Not Seen in GDP”
extent. The lower the age, the more likely the user felt reviews are “very valuable.” The survey next asked what they primarily focused on when reading reviews. The most common response in all age brackets was “reliability of the information (have a certain number of people reviewed the goods based on actual experiences?).”

### 3. Future social and economic prospects brought on by ICT progress

The table below summarizes some prospects on the kind of future ICT progress will bring to our society and economy, based on the significance and implications of ICT's non-monetary value we have seen so far (Figure 1-4-3-1).

Figure 1-4-3-1 ICT's non-monetary values and future social and economic prospects

Considerations based on current examples
Area	Examples	Significance and implications
Consumer surplus	- Music and video streaming services- E-books	- Consumer surpluses, along with user bases, will grow as ICT progress drives down prices of goods and services- Consumers tend to have relatively strong needs for content recommendations matching one's preferences (from survey results)
Time savings	- Information search services- e-commerce services- Navigation services	- ICT helps save time when searching for information or shopping (from survey results)- Since less time is spent per search, an increasing amount of information can be searched
Information assets	- Reviews (word of mouth), etc.	- ICT progress makes it easier for individuals to communicate and share information
- Review sites, online shopping (B2C)	- Less risk of purchasing goods or services with poor cost-versus-quality tradeoffs because word-of-mouth and reviews drive competition among similar goods and services- Consumers tend to put considerable importance on reviews by a certain number of people based on actual experiences (from survey results)
- Online auctions (conventional forms of C2C)	- Auction sites have established mechanisms to ensure trustworthiness of transactions, such as allowing sellers and buyers to rate each other and enabling users view past reviews on other users
- New forms of C2C	- New forms of C2C are improving matching accuracy and boosting the assurance of trust, by combining the ability to rate other users and view past reviews on other users with other information — such as credit card information, passports, driver's licenses, and reputations on social media

(Source) "Study Report on ICT Contributions to Social Well-Being Not Seen in GDP"
FY2016 Settlement

# White Paper on Local Public Finance, 2018

# – Illustrated –
## Contents

The Role of Local Public Finance 01
FY2016 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 Outstanding Local Government Bonds and Debt Burden 26
2. Trends in Outstanding Borrowing Borne by the Ordinary Accounts 26
3. Trends in Balance of Funds 27
Local Public Enterprises 28
1. Presence of Local Public Enterprises 28
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, expenditures classified by type) 30
2. Financial Status of Businesses of Local Public Enterprises of Disaster-Struck Organizations 32
Promotion of the Soundness of Local Public Finance 33
1. Overview of the Act on Assurance of Sound Financial Status of Local Governments 33
2. Status of the Ratios for Measuring Financial Soundness and Financial Shortfall Ratio 34

1 "Net totals of the revenues and expenditures" are the ordinary net account totals of 3,061 organizations (47 prefectures, 1,718 municipalities, 23 special wards, 1,207 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.

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 FY2016, and the initiatives of local governments towards sound public finances (mainly the status of the ratios for measuring their financial soundness), with particular attention given to ordinary accounts (Public enterprises, such as water supply, transportation, and hospitals are described in the section on Local Public Enterprises).

## Classification of the Accounts of Local Governments Applied in the Settlement Account Statistics

The accounts of local governments are divided into the general accounts and the special accounts, but classification of these accounts varies between local governments. Therefore, the accounts are classified in a standardized manner into ordinary accounts, which cover the general administrative sector, and other accounts (public business accounts). This makes it possible to clarify the financial condition of local governments as a whole and to make a statistical comparison between local governments.

Local Government Accounts

## Other accounts (Public business accounts)

Latter-stage elderly medical care accounts
## How large is local public finance?

The ratio of expenditure by local governments in gross domestic product (nominal) is 10.9%, about 2.7 times that of the central government.

Gross Domestic Product (Expenditure, nominal) and Local Public Finance (FY2016)
# The Role of Local Public Finance

## How large is local government expenditure in total public expenditure?

Looking at the breakdown of public expenditure classified by final expenditure entity, local government expenditure accounts for 42.6% of Government final consumption expenditure, and 49.5% of Public gross capital formation. As a final expenditure entity, local governments above the central government and play a major role for the national economy.

## Breakdown of public expenditures

## Trends in public expenditures

Fiscal Year | Public Corporations (Billion) | Social Security Funds (Billion) | Central Government (Billion) | Local governments (Billion)
FY2006 | 120901.3 | 34000.0 | 22808.2 | 57404.0
FY2007 | 121670.9 | 35257.8 | 22688.3 | 56670.7
FY2008 | 120427.1 | 36009.9 | 22667.9 | 54777.4
FY2009 | 123166.6 | 37489.0 | 23168.8 | 55432.7
FY2010 | 122755.8 | 38914.2 | 21368.5 | 55931.6
FY2011 | 123962.7 | 40355.5 | 21232.4 | 56053.6
FY2012 | 124775.6 | 41436.6 | 20883.7 | 55776.0
FY2013 | 128782.3 | 42467.3 | 22798.0 | 56739.5
FY2014 | 131483.5 | 43588.0 | 22488.4 | 58389.6
FY2015 | 132823.9 | 45129.6 | 21791.8 | 58586.7
FY2016 | 133163.2 | 45333.9 | 22039.3 | 58531.5
## I n 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.

Share of Expenditures by Purpose of Central and Local Governments (final expenditure based)
# FY2016 Settlement Overview

## 1 Revenues

¥101,459.8 billion (down ¥457.6 billion, 0.4% year on year)

Regular portion: ¥97,642.2 billion (up ¥131.1 billion, 0.1% year on year)

Great East Japan Earthquake portion: ¥3,817.7 billion (down ¥588.8 billion, 13.4% year on year)

The increase of revenues in the regular portion resulted from an increase in National treasury disbursements, etc.

The decrease in revenues in the Great East Japan Earthquake portion resulted from a decrease in transfers from other accounts, etc.

## 2 Expenditures

¥98,141.5 billion (down ¥263.8 billion, 0.3% year on year)

Regular portion: ¥94,766.6 billion (up ¥195.8 billion, 0.2% year on year)

Great East Japan Earthquake portion: ¥3,374.9 billion (down ¥459.5 billion, 12.0% year on year)

The increases of expenditure in the regular portion resulted from an increase in social assistance expenses, etc.

The decrease in expenditures in the Great East Japan Earthquake portion resulted from a decrease in Ordinary construction work expenses, etc.

## 3 Revenue and Expenditure Settlement

The real balance showed a surplus of ¥1,960.5 billion.

Category	Account Settlement	No. of local governments with a deficit
FY2016	FY2015	FY2016	FY2015
Real balance	¥1,960.5 billion	¥1,962.4 billion	—	—
Single year balance	¥2.8 billion	¥125.2 billion	1,702	1,133
Real single year balance	▲¥100.1 billion	¥501.8 billion	1,595	1,055

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.
## 4 Trend in Scale of Account Settlement

Both revenues and expenditures of the regular portion have increased for four consecutive years.

## 5 Major Financial Indices

Ordinary balance ratio rose 1.7 percentage points year on year, to 93.4%. Real debt service ratio declined 0.6 percentage points, to 9.3%.

Category	FY2016	FY2015	Change
Ordinary balance ratio	93.4%	91.7%	1.7
Real debt service ratio	9.3%	9.9%	$ \Delta $ 0.6

## 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 ¥197,318.9 billion (down ¥1,778.1 billion, 0.9% year on year).

Category	FY2016	FY2015	Change amount	Change rate
Outstanding local government bonds	¥144,908.7 billion	¥145,526.4 billion	▲¥617.8 billion	▲0.4%
Outstanding local government bonds (excluding Bonds for the extraordinary financial measures)	¥93,013.7 billion	¥94,864.7 billion	▲¥1,851.0 billion	▲2.0%
Outstanding borrowing from the special accounts for Local allocation tax	¥32,417.3 billion	¥32,817.3 billion	▲¥400.0 billion	▲1.2%
Outstanding public enterprise bonds (borne by ordinary accounts)	¥19,992.9 billion	¥20,753.3 billion	▲¥760.4 billion	▲3.7%
Total	¥197,318.9 billion	¥199,097.0 billion	▲¥1,778.1 billion	▲0.9%

Note : Outstanding public enterprise bonds (borne by ordinary accounts) are estimates based on the settlement account statistics.