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Have you ever thought about local finance?
Hmm..I never thought about it.
I often hear about tax increases on the news...
There are a lot of people in Tokyo, and I can imagine that there is a lot of finances,
but I didn't really care about the current state of local finances.
However, for those of us who are thinking about regional revitalization,
we would like to learn about financial resources.
Let's think about it by comparing.

Japan's gross domestic product


(Created based on the International Monetary Fundhttps://www.imf.org/ja/Home)


Gross domestic product is the total amount of added value produced within a country over a certain period of time.
Since 1968, Japan has been the world's second-largest economy after the United States, but its actual gross domestic product in 2010 became lower than China's.Also, according to the latest forecasts from the International Monetary Fund (IMF), Japan is expected to be overtaken by Germany and come in the fourth place.Japan has been said to be the third largest economic in the world, but there is some concern about its potential weakening economic growth.


About finances


Click on image to enlarge

(Created based on the National Tax Agencyhttps://www.nta.go.jp/)
An unimaginable amount..
Money is used in various ways.
Do you know about the local allocation tax subsidy for expenditure?
Hmm..
I'm pretty sure it's money provided by the national government to reduce the fiscal disparity between local governments.
So, how much is the difference between Tokyo and local revenue?
Let's look into the fiscal disparity between rural areas and the city center.
Good!
Let's compare various prefectures and cities and think about what can be connected to regional revitalization.



Click on image to enlarge↑

〇Comparison between Tokyo, which has a large population, and Tottori Prefecture,
which has a small population.〇



https://www.metro.tokyo.lg.jp/ Tokyo homepage            https://www.pref.tottori.lg.jp/ Tottori homepage


As you can see from the graph above, Tokyo has a large population, so it is easy to collect metropolitan taxes, and most of the city's income is covered by metropolitan taxes. This means that Tokyo has a large amount of independent financial resources, and can be said to be financially stable in Tokyo. On the other hand, nearly half of the funding for local areas comes from government-issued benefits (national treasury disbursements) and special local grants, making it difficult for prefectures to secure sufficient financial resources. This needs to be supplemented with dependent financial resources provided by the national and prefectural governments.



 
https://www.pref.kanagawa.jp/ Kanagawa homepage            https://www.pref.shimane.lg.jp/ Shimane homepage



Even in neighboring Tokyo and Kanagawa prefectures, the amount of income varies greatly.
Yes, that's right!
However, Kanagawa Prefecture has a lot of independent financial resources because it is a city center.
After all, places with a large population attract money.
I never thought that the amount of money collected could differ so much depending on the region.
Let's compare other regions

○Comparison between Hokkaido and Okinawa prefectures, which are popular for tourism〇


https://www.pref.hokkaido.lg.jp/ Hokkaido homepage            https://www.pref.okinawa.jp/ Okinawa homepage



Comparison of popular tourist destinations, Hokkaido and Okinawa.Since Hokkaido is overwhelmingly larger in area, the difference in total revenue is large, but when compared graphically, both prefectures have low prefectural taxes (hokkaido taxes) and are dependent on national treasury disbursements and local allocation taxes.


〇Comparison between Hiroshima and Ibaraki prefectures with similar populations〇


https://www.pref.hiroshima.lg.jp/ Hiroshima homepage            https://www.pref.ibaraki.jp/ Ibaraki homepage


In Hiroshima and Ibaraki prefectures, the ratio of independent financial resources to dependent financial resources was about 50-50.
The population is about 2.8 million people, and only about 50% of it comes from independent financial resources.
But the number of people moving into Ibaraki Prefecture is increasing!
Yes, one of the reasons is because Tsukuba Express was built!
It runs from Akihabara station to Tsukuba in 45 minutes.
It's popular because commuting in Tokyo is easier and it's a good environment to raise children.
Having people with children living here will lead to regional revitalization.
One of the reasons for its popularity is that it is easily accessible to the city center.

〇Compare by city that is the prefectural capital〇


https://www.city.hiroshima.lg.jp/ Hiroshima City Homepage            https://www.city.mito.lg.jp/ Mito City Homepage




I had never thought about local finance before, so it made me think about a lot of things.
Yeah, me too
After all, the root cause is population decline. Also, if the population of a region increases, local subsidies will decrease and tax revenue can be lowered.
Yes, I hate Japan, where taxes keep rising!
I think we need to reconsider how to effectively utilize limited financial resources.
I would also like to know about Japan's efforts.
Let's find out if there's anything you can do in your area!