In principle, Local Governments may issue bonds to finance purposes stipulated in Article 5 of the Local Finance Law.
Such purposes include:

• Operating public enterprises such as transport, gas, water supply and sewerage services:
• Investments and loans;
• Renewal relief works;
• Constructing public facilities such as schools, nurseries, other educational or welfare facilities, and firefighters' facilities; and
• Developing road, river, port and other public infrastructures

• 
  Hospital
  (Miyagi Prefecture)
• 
  Stadium
  (Saitama Prefecture)

• 
  Investment ＆ Infrastructure
  (Aichi Prefecture ＆ Nagoya City)
• 
  Hospital
  (Osaka City)

• 
  Sewerage
  (Kure City)
• 
  Museum
  (Kita Kyusyu City)

In addition, other statutory provisions authorize Local Governments to issue bonds for specific purposes. These include:

• Depopulated Areas Special Measure Bonds, based on the Law on Special Measures to Stimulate Depopulated Areas;
• Municipal Merger Special Measure Bonds, based on the Law on Special Measures to Promote Municipal Mergers;
• Evacuation Facility Development Bonds, based on the Law on Special Measures for Active Volcanoes;
• Mining Pollution Relief Bonds, based on the Local Finance Law

Further, special Local Government Bonds can be issued to ensure sufficient revenue sources for Local Governments. These include:

• Tax-Reduction Supplementary Bonds, based on the Local Finance Special Measures Law;
• Retirement Allowance Bonds, based on the Law on Special Measures to Promote Local Finance Rehabilitation;
• Revenue Shortfall Bonds, based on the Basic Law on Disaster Relief Measures; and
• Temporary Financial Measures Bonds, based on the Local Finance Law