The number of local governments able to operate their finances without tax allocations from the state thanks to their abundant tax revenues has increased for the fourth consecutive year, the internal affairs ministry said Tuesday.
In fiscal 2025, such local governments totaled 85, up by two from the previous year, reflecting the growth of local tax revenues backed by robust corporate performance.
On Tuesday, the ministry decided the amounts of fiscal 2025 ordinary tax allocations that will be given to respective local governments, with the aim of supplementing shortages in their financial resources. Internal affairs minister Seiichiro Murakami reported on the allocations at the day's Cabinet meeting.
Of the country's 47 prefectures, Tokyo is the only one not to be given tax allocations. The remaining nonrecipients are cities, towns and villages.
The town of Kikuyo in Kumamoto Prefecture, which hosts a plant operated by Taiwan Semiconductor Manufacturing, the world's leading semiconductor contract manufacturer, became a nonrecipient for the first time.
Including Kikuyo, 10 local governments switched from receiving tax allocations to not receiving them, while eight municipalities that had not been recipients became recipients.
The total amount of ordinary tax allocations will increase 1.6% from the previous fiscal year to ¥17,819.8 billion, which will be distributed to 1,680 local governments.
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