・Securing revenue resources by means of local bonds
Local authorities can use local bonds (local government loans) to finance projects that future residents should share the cost of such as the construction of public facilities, or when the local authority needs to make a large temporary outlay, for example to deal with a natural disaster.
・The bureau draws up a local loan program every fiscal year, and decides how much in local bonds will be issued. In this way, it distributes he limited local bond funds.
・Regulating revenue sources by the local allocation tax system
Ideally, it is desirable that local authorities should be financed by their own revenue resources such as local taxes. In fact however, revenue resources are unevenly distributed, so the local allocation tax system is needed to adjust this inequality and guarantee general revenues (revenues that can be used according to the independent judgment of the local authority), for local authorities with little income from local taxes. The local allocation tax system serves such a purpose.
