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Summary of FY 1998 Local Public Finance Program

 

January, 1998

Ministry of Home Affairs

 

・The Local Public Finance Program is the forecast amount of local revenue and expenditure drawn up on the basis of Article 7 of the Local Allocation Tax Law, and is submitted to the Diet session in which the Local Allocation Tax Law is deliberated.

 

I The state of local public finance in FY '98

 

・Promotion of financial structural reform

・Because of drastic restraint on expenditure, the growth rate of local general expenditure will be △1.6%.

・Growth rate of local financial deficit 1.9% (FY '97 2.3%)

 

1. The scale of the FY '98 Local Public Finance Program

(1) Scale of the Local Public Finance Program \87,097 billion (growth rate 0.0%)

(2) Local general expenditure \73,363 billion (growth rate △1.6%)

(3) Local public non-subsidized service (investment) \19,300 billion (growth rate △4.0%)

(4) Local financial deficit as a proportion of GDP 1.9% (FY '97 2.3%, FY '96 2.8%)

 

a. The scale of the FY '98 Local Public Finance Program is Y87,097 billion (growth rate 0.0%)

b. The growth rate of local general expenditure, the total expenditure not including public debt repayment, is △1.6%, held rigorously in check in line with the Special Law for the Promotion of Financial Structural Reform.

c. Local public non-subsidized services (investment) \19,300 billion (growth rate △4.0%)

d. General administration expenditure (non-subsidized)

・Social welfare expenditure Y3,875 billion (growth rate 4.9%)

・Land conservation programs general administration \60 billion (infrastructure \150 billion , total \210 billion)

・Urban redevelopment programs general administration \45 billion (infrastructure \50 billion, total \95 billion)

 

 

 

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