Explanation of financial terms

　A statistical account 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 the sum of the overlapping amounts.In Inagi City, the general account and the land readjustment. This applies to part of the business special account and the latter-stage elderly medical care special account.

　The difference between the city's revenue and expenditure (cash received and cash disbursed during the fiscal year) is called the formal balance. This is the amount obtained by subtracting the financial resources to be carried over to the next year from the formal balance.
The real balance surplus/deficit is an important point in determining the state of fiscal management. A real balance deficit means that fiscal management is in a destructive and unhealthy state.

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

Ordinary general revenue

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

　Among the city's expenditures, ordinary expenses such as personnel expenses, assistance expenses, public debt expenses, property expenses, subsidy expenses, etc., and advances, and among the revenue, ordinary general revenue such as city taxes, local allocation tax, local transfer tax, etc. is an index that expresses how much is used as a percentage.
Recurring expenses will be covered by specific recurring revenue sources such as the national and metropolitan governments, and the shortfall will be covered by regular general revenue sources. The more ordinary general revenue resources that remain after being appropriated for ordinary expenses (the lower the current account balance ratio), the more flexible the fiscal structure can be said to be.

　Since the local bond approval system shifted to a consultation system from FY2006, this ratio was newly established from the fiscal year 2005 settlement.Basically, the numerator is the principal and interest redemption amount (public bond expenses) of local bonds, and the denominator is the standard fiscal size. and find it. What is different from the past is that the numerator's principal and interest redemptions include payments from the ordinary account for principal and interest redemptions paid by public enterprises such as sewerage systems, and expenses similar to public debt expenses such as PFI and some administrative associations, so that the city It shows the overall financial results. Shown as the average value for the past three years.

　This is the value obtained by dividing the standard fiscal revenue amount by the standard fiscal demand amount used in calculating the ordinary allocation tax. The displayed value is the average value for the past three years including the current year, and a value over 1.0 means that the company is financially strong. The standard fiscal demand amount is the expenses required to carry out standard administrative operations, and the standard fiscal revenue amount is the amount that is theoretically estimated (determined in July every year) to estimate the amount of income from city taxes, etc. is.
In addition, as a general rule, 75% of city taxes, etc. are included in the standard fiscal revenue amount.
If the city's financial strength for the year is less than 1.0, the granting organization will be issued with the regular allocation tax, and if it exceeds 1.0, it will not be issued. (For allocation tax purposes, it is viewed in a single year.)

　The city's expenditures are classified by purpose based on the Local Autonomy Act, such as public welfare expenses, educational expenses, and civil engineering expenses, and by nature, which is used in local finance statistics. Next, we will explain the terms for classifying mandatory expenses, investment expenses, and other expenses by nature.

　Of the expenses of local governments, these are compulsory and inflexible expenses, including personnel expenses , assistance expenses , and public debt expenses . All of these expenses are highly obligatory and cannot be reduced freely, and they are recurring expenses that are repeatedly expended every year due to the composition of expenditures.

personnel costs

　All expenses (salaries, allowances, mutual aid expenses, contributions to retirement allowances, etc.) that are paid as compensation for labor, such as salaries of regular employees and compensation for special positions such as mayors, councilors, and commissioners of education, and are expenses included in financial statements. used as a classification.
As they occupy a large part of the financial structure and are recurring expenses, they have a great influence on ensuring fiscal soundness.

aid expenses

　This refers to the expenses paid to recipients under the Public Assistance Act, Child Welfare Act, Elderly Welfare Act, etc., and the amount of expenditures for various types of assistance provided by the city. Due to its nature, it is an expense that cannot be reduced arbitrarily, and an increase in it will make the financial structure rigid.

public debt expenses

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

　Expenses required for the maintenance of public facilities such as the 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 , subsidy costs , reserves, paid- out funds, maintenance and repair costs, investments and capital contributions, and loans.

property cost

　This includes expenses for consumables at city halls, schools, etc., expenses for utilities, equipment purchase expenses, commission fees for computer work, etc.

Subsidy expenses etc.

　Contributions and subsidies to some administrative associations of which Inagi City is a constituent organization and carry out joint processing of affairs (Tama River Sanitation Association for garbage and human waste disposal, Tokyo Tama Wide Area Resource Circulation Association, Minami Tama Funeral Home Association, etc.) This includes contributions and subsidies to public enterprise accounts (sewerage projects, hospital projects), subsidies to various organizations within the city (arts and culture organizations, sports organizations, etc.) and promotion and development projects.

withdrawal money

　Special accounts are assumed to be self-supporting for business purposes, but in reality, from the perspective of reducing the burden on citizens, it is difficult to collect fees commensurate with the expenditures of each special account, and it is difficult to collect fees that are commensurate with the expenditures of each special account. I have no choice but to. The city makes payments to the National Health Insurance Special Account, Land Readjustment Project Special Account, Nursing Care Insurance Special Account, and Medical Care Special Account for the Elderly for working capital, administrative expenses, deficit compensation, etc.

The "Act on Financial Soundness of Local Governments" ("Soundness Law") clarifies the financial situation of local governments using unified indicators, and allows prompt response when fiscal soundness or revitalization is necessary. It was fully implemented in April 2009 to ensure that

The Financial Soundness Act uses the following four fiscal indicators as the "soundness judgment ratio" to objectively represent the financial situation of local governments and determine the need for early fiscal soundness and revitalization. It is determined.

(1) Real deficit ratio When a deficit occurs in the general account, etc. (including some special accounts), the amount of the deficit is calculated as the standard financial scale [the standard size of general revenue sources (mainly city taxes, etc.)]. This is an index for comparison. The higher this ratio is, the worse your financial situation is.

(2) Consolidated real deficit ratio In order to understand how much funds are lacking in the city as a whole, the total amount of deficit and surplus of all the city's accounts is compared with the standard fiscal size and converted into an index. . The higher this ratio, the worse the financial situation of the city as a whole. Even if the general account has a surplus, if other accounts have large deficits, the city as a whole cannot be said to be in a good financial situation.

(3) Real debt service ratio Comparing the amount of loan repayments in a single year [including expenses similar to borrowings such as school purchase costs (installment purchase costs)] with the amount based on the standard financial scale (past 3 annual average value). The higher this ratio is, the higher the proportion of loan repayments in city taxes, etc., and the lower the elasticity of finances.

(4) Future burden ratio Comparing the loan repayment amount in a single year (including expenses similar to borrowing, such as school purchase costs (split purchase costs)) with the amount based on the standard financial scale, and converting it into an index (for the past three years) average value). The higher this ratio is, the higher the proportion of loan repayments in city taxes, etc., and the lower the elasticity of finances.

This is calculated for each public company and converted into an index by comparing the amount of funding shortfall with the business scale. The higher this ratio is, the more difficult it becomes to eliminate the lack of funds through fee income, etc., which indicates a problem in the business situation.