In order to support local public finance, which is expected to become severe due to the influence of the new coronavirus, Minister for Internal Affairs and Communications Takeda and Deputy Prime Minister and Finance Minister Aso will raise the local allocation tax by 900 billion yen from this year to 17 trillion in the budget plan for next year. We have agreed to secure 400 billion yen.
Minister for Internal Affairs and Communications Takeda held ministerial negotiations with Deputy Prime Minister and Minister of Finance Aso to determine the budget for the next fiscal year (Reiwa 3).
Then, it was agreed to secure a local allocation tax of 17.4 trillion yen, which is 900 billion yen more than this year, to support the finances of local governments.
Local allocation tax is funded by a certain percentage of income tax and corporate tax, so if calculated as usual, it was expected to drop significantly due to the influence of the new coronavirus, but special additions will be made for the first time in three years. It is a policy to supplement.
On the other hand, the tax revenue of local governments is expected to decrease significantly, so we have increased the system called "temporary financial measures bonds" to have local governments temporarily borrow money instead of the national government, and next year will be 2 trillion yen from this year. It was decided to increase the amount to 5.5 trillion yen.
At a press conference, Minister Takeda said, "By securing the local allocation tax to the maximum, the increase in extraordinary fiscal measures bonds can be significantly suppressed compared to the time of the Lehman shock, and I think that the local government will appreciate it." ..