Data Analysis on the Subsidy System in Local Governments of Japan

Abstract

The overhaul of the subsidy system in local governments has been a significant issue in recent years, because of the financial difficulties, the merger of municipalities, etc. Although some municipalities merged with the others to increase the efficiency of administration, the total subsidies rose. They tried to find a new way out in many municipalities. This paper aims to clarify the general circumstances of the overhaul of the subsidy system in 239 municipalities of Ibaraki, Tochigi, Gunma, Saitama, and Chiba Prefecture. The findings are as follows:（1）81% of the municipalities had overhauled the subsidy system and 16% are now proceeding to discuss it, （2）the median of the reduction rate based on money is 10%. But the amount of subsidy grew up after the overhaul in six municipalities,（3） the merger of municipalities triggered the overhaul of the subsidy system in Ibaraki Prefecture,（4） committees for review and discussion are set up in 56% of the municipalities; however, the external member ratio is only 4%,（5）56% of the municipalities adopt the terminal of subsidy. Sixteen municipalities apply the “Sun-Set System” to all subsidies, and（6）the “Proposal System” did not prevail and there is a difference between prefectures.