2019 Volume 18 Pages 156-168
This article focuses on large designated cities, and examines the factors that increases unsubsidized general public works loans. This article shows the following facts.
1) More comprehensive regional development project bonds were issued with higher public modifications’ share in the standard financial demand of Local Allocation Tax.
2) Even if the balance ratio was higher than usual and there was little money for public investment, the cities increased these public works loans.
3) The increase of debt service burden ratio reduced these public works loans. In conclusion, national government measures to increase unsubsidized general public works loans may disturb optimum resource allocation, even though these public works loans decreased with the economic stagnation that has continued after late 1990’s.
