FY2026 Local Finance Council Summary (August 21)
Overview
The Local Finance Council deliberated on the September allocation of the FY2026 Special Local Allocation Tax for Earthquake Disaster Reconstruction under Article 23 of the Local Allocation Tax Act. Following explanations and deliberations, it approved the agenda and confirmed the scale of projects during the Third Reconstruction and Revitalization Period, the verification of baseline figures used in calculation, and the classification of projects financed solely by local governments. The project scale is expected to be approximately 1.9 trillion yen.
Key points
- The council deliberated on and approved the September allocation of the FY2026 Special Local Allocation Tax for Earthquake Disaster Reconstruction.
- The project scale during the Third Reconstruction and Revitalization Period is projected.
- It participates in the calculation by verifying the baseline figures reported by local government bodies.
- Projects financed solely by local governments are classified mainly as soft projects.
Overview
Under Article 23 of the Local Allocation Tax Act, the Local Finance Council deliberated on the September allocation of the FY2026 Special Local Allocation Tax for Earthquake Disaster Reconstruction. At the meeting on August 21, 2026, it received an explanation from the Fiscal Affairs Division of the Local Public Finance Bureau and then held deliberations.
As a result of the deliberations, the agenda was approved. The main points were the project scale during the Third Reconstruction and Revitalization Period, the verification system for calculating local allocation tax, and the classification of projects financed solely by local governments.
Details
The project scale during the Third Reconstruction and Revitalization Period is expected to be approximately 1.9 trillion yen. When calculating the Special Local Allocation Tax for Earthquake Disaster Reconstruction, the Reconstruction Special Local Allocation Tax Office verifies whether the baseline figures reported by local government bodies are appropriate.
The view was expressed that projects classified as projects financed solely by local governments are mainly soft projects, and the explainer responded that this was correct. Five committee members, including Chair Sachi'o Konishi, and Assistant Section Chief Katsutoshi Sakai of the Fiscal Affairs Division of the Local Public Finance Bureau attended the meeting.