Glossary of financial terms

　Statistical accounting created according to the standards set by the Ministry of Internal Affairs and Communications, which is the sum of the general account and special account (excluding public enterprise accounts) and deducts the duplicate amount. Inagi City, the general account and land readjustment Part of business special accounts and elderly medical care special accounts corresponds to this.

　The difference between the city's revenue and expenditure (cash received and cash spent during the fiscal year) is called formal income and expenditure. We say amount of money that deducted financial resources which should be carried over to the next fiscal year from form income and expenditure.
The surplus or deficit in the real balance is an important point in judging the status of fiscal management. The fact that the real balance is in the red means that fiscal management is in a state of bankruptcy and unsound.

　When the city's income is classified based on how it is used, it is divided into general revenue sources that the city can freely use for any expenses, and special revenue sources where the usage of expenses is limited. Specific revenue sources include national treasury disbursements, metropolitan disbursements, and local bonds.

Ordinary General Fund

　It refers to income that can be used freely without restrictions, such as city tax and local allocation tax, among the income that comes in every year. It is a flexible income for the city because it is a constant income every year and you can freely decide how to use it.

　Ordinary expenses such as personnel expenses, welfare expenses, public debt expenses, property expenses, subsidies, etc., and withdrawals, among the city's annual expenditures, ordinary general revenues such as city taxes, local allocation tax, local transfer tax is an index that expresses how much is used as a percentage.
Ordinary expenses will be appropriated from ordinary special revenue sources such as the national and metropolitan governments, and the shortfall will be allotted from ordinary general revenue sources. It can be said that the more the remaining ordinary general revenue resources allocated to ordinary expenses (the lower the ordinary balance ratio), the more elastic the fiscal structure.

　Since the local bond approval system shifted to a consultation system in 2006, this ratio was newly established from the settlement of accounts in 2005. Basically, the numerator is the principal and interest redemption amount of local bonds (public debt expenses), and the denominator is the standard financial scale. and ask for it. What is different from the past is that the principal and interest redemption amount in the numerator includes the amount withdrawn from the ordinary account for the principal and interest redemption amount paid by public enterprises such as sewage systems, and expenses similar to public debt expenses such as PFI and some administrative associations. It shows the overall financial results. It shows the average value for the past three years.

　This is the figure obtained by dividing the standard financial revenue amount by the standard financial demand amount used in calculating the ordinary local allocation tax. The figures shown are averages for the past three years, including the year in question, and a figure above 1.0 means financial strength. The standard financial demand amount is the cost required to carry out standard administrative operations, and the standard financial revenue amount is a theoretical estimate (determined in July of each year) of how much income such as city taxes are available. is.
In addition, as a general rule, 75% of city taxes, etc., are included in the amount of standard financial revenue.
If the financial capacity of the city in the relevant fiscal year is less than 1.0, ordinary allocation tax will be issued as a granting organization, and if it exceeds 1.0, it will not be granted. (Local allocation tax is viewed in a single year.)

　The city's expenditures are classified according to purpose, such as public welfare expenses, educational expenses, and civil engineering expenses, based on the Local Autonomy Act, etc., and according to the nature of the local finance statistics. Next, we will explain the terms for categorizing mandatory expenses, investment expenses, and other expenses by nature.

　Among the expenses of local governments, personnel expenses , assistance expenses , and public loan expenses are expenses with a strong obligatory and inelastic character. All of these expenses are highly compulsory and cannot be reduced freely, and from the structure of expenditures, they are recurring expenses that are repeatedly paid every year.

labor cost

　All expenses (salaries, allowances, mutual aid expenses, retirement allowance contributions, etc.) paid as consideration for labor as salaries for general staff, mayors, assembly members, board members of education, etc., and expenses in account settlement statistics used as a distinction.
It occupies a large weight in the financial structure and has a great influence in ensuring the soundness of the public finances because of the expenses that are regularly spent.

assistance expenses

　Expenses paid to the dependents under the Public Assistance Law, Child Welfare Law, Elderly Welfare Law, etc. and expenditures for various assistance provided by the city. It is an expense that cannot be reduced arbitrarily by its nature, and its increase brings about the rigidity of the financial structure.

public debt

　This refers to the interest on redemption of the principal and interest of local bonds (debt) issued by the city every year and the interest on temporary borrowings. It is an expense required to pay past debts, and if this amount increases, financial management will become rigid.

　Expenses required for maintenance of public facilities such as construction of roads, bridges, parks, schools, etc. It consists of ordinary construction project costs, disaster recovery project costs, and unemployment countermeasure project costs.

　Other expenses include property costs , subsidies, etc. , reserves, withdrawals , maintenance and repair costs, investments and investments, and loans.

material expenses

　Expenses for consumables such as city halls and schools, utility costs, equipment purchase costs, commission fees for computer work, etc. fall under this category.

Subsidies, etc.

　Contributions and subsidies to some clerical associations (garbage and human waste disposal Tamagawa Hygiene Association, Tokyo Tama Wide Area Resource Circulation Association, Minami Tama Funeral Hall Association, etc.) that are organized by Inagi City and jointly handle clerical work. , Contributions and subsidies to public enterprise accounts (sewerage business, hospital business), various groups in the city (arts and culture groups, sports groups, etc.) and subsidies to promotion and development projects.

Withdrawal money

　The special account is premised on self-supporting accounting from the business purpose, but in reality it is difficult to collect fees that match the expenditure of each special account from the viewpoint of reducing the burden on citizens, etc. I can't help it. In city, we draw out for working capital, office expenses, deficit compensation for national health insurance special account, land readjustment business special account, long-term care insurance special account special account, elderly aged 75 or over medical care special account.

The "Act on Financial Soundness of Local Public Entities" ("Financial Restoration Act") clarifies the financial status of local public entities with a unified index, and responds promptly when financial consolidation and revitalization are necessary. It was fully enforced in April 2009 in order to

In the Restoration Law, the following four financial indicators are used as the "restoration judgment ratio" to objectively represent the financial situation of local governments and to judge the need for early restoration and revitalization of their finances. I have decided.

(1) Real deficit ratio When there is a deficit in the general account (including some special accounts), the amount of deficit is the standard financial scale [standard size of general revenue (mainly city tax, etc.)] indexed for comparison. The higher the ratio, the worse the financial situation.

(2) Consolidated real deficit ratio In order to grasp how much funds are lacking in the city as a whole, the total amount of deficits and surpluses of all accounts of the city is compared with the standard financial scale and converted into an index. . The higher the ratio, the worse the financial situation of the city as a whole. Even if the general account is in the black, if there are many deficits in other accounts, it cannot be said that the financial situation is good for the city as a whole.

(3) Real debt service ratio A single fiscal year debt repayment amount [including school purchase costs (installment purchase costs) and other costs related to borrowing] is indexed by comparing it with the amount based on the standard financial scale (past 3 years) annual average). The higher this ratio is, the higher the ratio of debt repayments in city taxes, etc., and the lower the fiscal elasticity.

(4) Future Burden Ratio Amount of loan repayments for a single year [including school purchase costs (installment purchase costs) and other costs related to borrowing] is indexed by comparing it with the amount based on the standard financial scale (past 3 years average value). The higher this ratio is, the higher the ratio of debt repayments in city taxes, etc., and the lower the fiscal elasticity.

It is calculated for each public enterprise and indexed by comparing the amount of lack of funds with the business scale. The higher this ratio, the more difficult it will be to eliminate the shortage of funds through toll income, etc., and the more problematic the management situation will be.