Overview and System of Local Government Bonds in Japan

The local finance program and local allocation tax

The local financial program is a document that forecasts a local government's total revenue and expenditures for the following fiscal year. The local financial program serves the following purposes: (1) Guarantee local financial resources in relation to the local allocation tax system, (2) Coordination of local finances with national finances and the national economy, and (3) Guidelines for administrative and financial management of individual local governments.