Kawasaki City, which was the only “non-granting organization” that does not receive local allocation tax from the national government among the ordinance-designated cities nationwide, will become a granting organization next year because tax revenue will decrease significantly due to the influence of the new coronavirus. It became a prospect.
In Kawasaki City, which has a population of approximately 1.54 million, tax revenues have increased for the seventh consecutive year until last year due to the development of high-rise apartments, and for the fifth consecutive year from 2016 to this year, it is a government-designated city nationwide. Among them, it was the only "non-granting organization" that manages its finances with its own tax revenue without receiving local allocation tax from the national government.
However, according to the budget plan for the next fiscal year announced by the city in February, the city tax revenue will decrease by about 18 billion yen compared to this year because corporate activities will be sluggish due to the influence of the new coronavirus and the municipal tax will decrease. Have been seen.
On the other hand, the total amount of the general account is about 820 billion yen, which is the largest ever because it provides loans to companies whose business performance has deteriorated, and since its own tax revenue is not enough, the local allocation tax will be the first in six years next year. It is expected to become a "granting organization" that receives.
In addition to utilizing the fund, the city will rebuild its finances by reviewing how to proceed with large-scale projects such as the elevated JR Nambu Line that runs through the city.