Features and Problems of Intergovernmental Subsidy (Tokubetsu-kofuzei) for Deficit Buses

Abstract

After 2000s’ changes of subsidy systems of buses with the deregulation, the national government invests public funds about main lines and local governments do about other lines. And the national financially helps local governments by intergovernmental subsidy (Tokubetsu-kofuzei). However, this fiscal measure has problems. It is fixed rate specific subsidy, so it does not guarantee the transport needed for living in regions. It should be converted to a flat rate specific subsidy. Furthermore, local governments cannot organize budget considering it, because of the rules of Tokubetsu-kofuzei.