FY2025 Municipal Ordinary Account Settlements: Preliminary
Overview
Municipal fiscal conditions were compiled as of the end of August 2026 and summarized preliminarily. Revenue totaled 74.5 trillion yen and expenditure totaled 72.1 trillion yen, both increasing from the previous fiscal year. The real balance showed a surplus of 1.7798 trillion yen, and one entity reported a deficit. The current account balance ratio, real debt service ratio, and outstanding local government bonds are also presented. The coverage comprises 1,718 municipalities and 23 special wards; intermunicipal administrative associations and regional unions are excluded. Figures are approximate and may change.
Key points
- The real balance showed a surplus of 1.7798 trillion yen, and one entity reported a deficit.
- Outstanding local government bonds decreased by 323.6 billion yen year over year, while the amount excluding temporary fiscal measures bonds increased by 1.3397 trillion yen year over year.
- Settlement amounts are divided into the Great East Japan Earthquake portion and the ordinary revenue and expenditure portion.
Overview
To provide a timely picture of municipal fiscal conditions, figures compiled as of the end of August 2026 were summarized preliminarily. The coverage comprises 1,718 municipalities and 23 special wards, for a total of 1,741 entities. Intermunicipal administrative associations and regional unions are excluded. Figures are approximate and may change.
The Great East Japan Earthquake portion refers to settlement amounts for recovery and reconstruction projects related to the Great East Japan Earthquake and nationwide disaster prevention projects. The ordinary revenue and expenditure portion is the total settlement amount minus that portion. Figures in parentheses show year-over-year changes; totals may not match because amounts below the displayed unit are rounded.
Details
Revenue increased by 3.1 trillion yen from the previous fiscal year. Local taxes rose by 130.88 billion yen, mainly due to increases in individual municipal resident tax and fixed asset tax. National treasury disbursements increased by 67.42 billion yen, mainly due to higher child allowance grants, while local special grants and related items decreased by 60.69 billion yen following the end of fixed-amount tax reductions.
Expenditure increased by 2.9 trillion yen from the previous fiscal year. Spending on goods and services rose by 79.25 billion yen due to higher prices and other factors. Ordinary construction expenditure increased by 63.66 billion yen due to new school construction and renovations, as well as the renewal and rebuilding of fire service facilities and equipment. Social assistance expenditure increased by 52.84 billion yen due to the expansion of the child allowance system and payments of child-rearing support in response to rising prices.
The real single-year balance recorded a surplus of 710 million yen, an increase of 19.11 billion yen from the previous fiscal year. The current account balance ratio was 93.3%, down by 0.5 percentage points, and the real debt service ratio was 5.5%, down by 0.1 percentage points.