Special Measures Law for Promoting the Reconstruction of Local Government Finances

Japanese: 地方財政再建促進特別措置法 - ちほうざいせいさいけんそくしんとくべつそちほう

Law No. 195 of 1955. This law was enacted in 1955 as a measure to improve the soundness of local finances. In the early 1950s, local finances were in a severe pinch, and in 1954, 2,281 local governments, or about 40% of the local governments nationwide, were in the red. For this reason, this law required the national government to intervene in the financial management of local governments that had gone bankrupt and were designated as financially reconstructed organizations, and required them to take strict financial reconstruction measures, such as reducing the number of employees, optimizing salary levels, and postponing new projects, thereby reducing expenditures, and increasing local taxes, fees, and charges, in order to increase revenues. In addition, measures such as temporary borrowing interest subsidies through special grants, easing restrictions on bond issuance, and issuing financial reconstruction bonds (limited to public enterprises) were taken as financial assistance from the national government. It was abolished in 2009 and succeeded by the Law on the Soundness of Local Government Finances.

Source: Encyclopaedia Britannica Concise Encyclopedia About Encyclopaedia Britannica Concise Encyclopedia Information

Japanese:

昭和30年法律195号。地方財政の健全化の措置として 1955年に実施された法律。1950年代初期は地方財政の逼迫が激しく，1954年度には全国の地方公共団体の約 40%，2281団体が赤字団体であった。このため同法により，財政が破綻し財政再建団体に指定された地方公共団体の財政運営に国が介入し，職員数の削減，給与水準の適正化，新規事業の繰り延べなどの支出節減と，地方税，使用料，手数料の増徴など収入の増加をはかる厳しい財政再建措置を求めた。これとともに国からの財政援助として，特別交付税による一時借入金の利子補給，起債制限の緩和，財政再建債の発行（公営企業にかぎる）などの措置がとられた。2009年に廃止され，地方公共団体の財政の健全化に関する法律に継承された。

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