Home Fiscal Summary Fiscal Overview Overview of The Three Major National Finances

Overview of the three major national finances

  • The government uses taxes (national and local taxes), other revenue, fund revenue as its major financing sources.

Revenue of the Three Major National Finances

Central finance revenue

  • National tax
    • Income tax
    • corporate tax
    • inheritance tax
    • VAT, etc.
  • Other tax
    • Current transfer revenue (fines, additional charges, etc.)
    • property revenue (investment dividend income, etc.)
    • public enterprise sales revenue, etc.
  • Funds
    • Social security contributions
    • retrieved financing plans and other forms of principal
    • income from sales of goods and services, etc.

Local finance revenue

  • Transfer revenue
    • Local grant tax
    • Grant-in-aid, etc.
    • ※ Supported by the central government
  • Independent revenue
    • Local tax
    • Non-tax revenue
  • Other
    • Preserved revenue
    • Local government bond, etc.

Local educational finance revenue

  • Local educational finance grant
    • ※ Supported by the central government
  • Local education tax
    • ※ Transferred by the local government, collected by the local government, and entire amount received through special accounts for education
  • Other
    • Legal transferred money_(city/province tax)
    • Subsidy(metropolitan cities, provinces, cities, counties, districts)
    • ※ Supported/transferred by the central and local governments

Central-Local Finance Structure

The central-local transfer of financing sources comprise local grant tax, education finance transfer, and subsidies.

Finance is divided into central government finance,Local finance,and education finance(Office of Education) The Central government finances are in the order of local grant tax,state subsidy- general finance(local government) - transfer to local education Support for education finance(the office of Education) or receive support from local grants and educational subsidies. Local finance supports education finance(Office of Education) in the order of general finnance(local government) - transfer to local education.

Central-Local Education Finance Structure

City/province education offices do not have the right to collect taxes for educational financing sources, and receive support from central and local financing.

Educational finance to supprt unit schools(Pribate/public)

  • The Ministry of Education supports City/Province offices of education with local grant tax and state subsidy, Support for unit academy with income borne by local governments, and income from the education office itself
  • Support unit academy with corporate transfer to school corporations
  • Support for unit academy with payment, school operation support cost, and expenses borne by the beneficiary from parents