IR Presentation Chiba Prefecture Fiscal Conditions and Prefectural Bonds May 2009 千葉県 1. Overview of Chiba Prefecture 1. Overview of Chiba Prefecture （1）Population, Number of Households Population 6,056,000 6th largest in Japan 42.4 Avg. Age 6th youngest Tokatsu Techno Plaza Lake Inba Historic houses average in Japan （Kashiwa City） （Sakura City/Inba‐mura） （Katori City） Makuhari New City Tsukuba No. of 2,330,000 （Chiba City） Express Narita New North Chiba Route Households Train Rapid Route Higashi‐Kanto Expressway Joban Expressway Inubozaki Cape （Choshi City） Aqua Line Ken‐o Outer Expressway Ring Line Keiyo Road Narita Intl Airport Makuhari Messe Tokyo bay Byobu‐gaura Kazusa DNA research Aqua Line （Choshi/Asahi cities） Institute（Kisarazu City） Ken‐o Expressway Kujukuri Beach （Kujukuri, others） Kazusa AP Kujukutani（Kimitsu City） Moon Desert Minami‐Kanto （Onjuku Town） Expressway Oyama Senmaida （Kamogawa City） Mt. Nokogiri（Kyonan‐machi） Nojima Light House（Minami‐boso） Chiba Pref.: Fiscal Conditions and Prefectural Bonds 2 1. Overview of Chiba Prefecture （2）Industry Agriculture Fishery Industry Chiba Prefecture is blessed with a warm climate Chiba Prefecture is located in a sea region and has Shipments of manufactured goods from Chiba and abundant land resources. Roughly one‐fourth both inner bays and open beach areas providing an Prefecture came to just over 14.1 trillion yen in of the prefecture's land, 134,000 hectares are used abundance and variety of seafood. In 2007, total 2007, which was the 7th highest in Japan. 56.4％ for farming. We have developed a balanced fishery output came to 169,000 tons, the seventh of all industrial output in Chiba comes from the agricultural industry that includes the growing of highest in Japan, making Chiba Prefecture one of three industries of chemicals（21.6％）, petroleum rice and vegetables, and the raising of livestock. Japan's premiere fishing prefectures. and coal products （ 21.6 ％ ） and iron & steel Chiba ranks third in Japan in terms of agricultural （13.2％）. output. Business Tourism Businesses help provide affluent lifestyles to Chiba Tourism is positioned as a main pillar of industry in Prefecture's 6 million citizens and play an Chiba Prefecture and in 2007 we launched the important role in supporting regional economies. “Chiba Destination Campaign” as a major push to As of June 1, 2007 there were 48,468 businesses encourage tourism. From March 2008 we have also employing 412,834 workers with total annual sales been developing various approaches for of just over 12.2 trillion yen. prefecture‐based tourism, including the establishment of the “Ordinance for Promoting Chiba Prefecture Tourism”. In 2006 Chiba Prefecture was visited by 127,970,000 tourists who spent a total of 445.2 billion yen. Chiba Pref.: Fiscal Conditions and Prefectural Bonds 3 1. Overview of Chiba Prefecture （3）National Rankings Chiba is a major industrial Population （10,000 people） Average age （Yrs） Area （Km2） prefecture with a good balance 1st Tokyo 1,258 1st Okinawa 39.1 1st Hokkaido 834,456 of industry covering everything 2nd Iwate 15,279 2nd Osaka 882 2nd Aichi 41.5 ・・ from agriculture, forestry and 3rd Kanagawa 879 3rd Shiga 41.6 28th Chiba 5,157 fisheries to commerce, and a ・ ・・ comparatively young population. ・ ・ 39th Saitama 3,797 ・ 43rd Kanagawa 2,416 6th Chiba 606 6th Chiba 42.4 45th Tokyo 2,187 National Census（as of Oct. 1, 2005） National Census（as of Oct. 1, 2005） National Census（as of Oct. 1, 2005） Per capita income （xJPY10,000） Manufactured goods shipments （JPY bn） Annual sales （JPY bn） 1st Tokyo 477 1st Aichi 46,563 1st Tokyo 181,353 2nd Aichi 352 2nd Kanagawa 19,768 2nd Osaka 60,303 3rd Shizuoka 334 3rd Shizuoka 18,959 3rd Aichi 43,192 ・・ ・・ 4th Osaka 16,896 ・・ ・・ 5th Hyogo 15,431 11th Yamaguchi 300 6th Saitama 14,198 8th Hyogo 13,266 12th Chiba 300 7th Chiba 14,100 9th Chiba 12,246 13th Saitama 296 8th Ibaraki 12,490 10th Hiroshima 11,810 （FY05）Annual Report on Prefectural Accounts, （FY05）Industrial Statistics, METI （FY07）Census of Commerce Cabinet Office Overnight visitors（total） （10,000 people） Agricultural production （JPY bn） Fisheries production （10,000 tons） 1st Tokyo 3,436 1st Hokkaido 1,053 1st Hokkaido 1,308 2nd Nagasaki 301 2nd Hokkaido 2,496 2nd Kagoshima 408 3rd Miyagi 268 3rd Osaka 1,561 3rd Chiba 401 ・・ 4th Chiba 1,472 4th Ibaraki 399 6th Mie 170 5th Shizuoka 1,261 5th Miyazaki 321 7th Chiba 169 Tourism Statistics Survey, Ministry of Land, （FY06）Census of Agriculture and Forestry, Ministry （FY07）Agriculture, Forestry and Fishery Statistics, Infrastructure, Transport and Tourism（Jan‐Dec, 2007） of Agriculture, Forestry and Fisheries Ministry of Agriculture, Forestry and Fisheries Chiba Pref.: Fiscal Conditions and Prefectural Bonds 4 2. Revenue and Expenditures 2. Revenue and expenditures （1）FY08 General Account Budget Revenue Chiba Prefecture has put Revenue Revenue（100 million yen） YoY change together a budget that is balanced in terms of reducing Prefectural tax 7,981 0.1％ 10.6％ expenditures through Corporate‐related tax 2,178 -1.8％ administrative and fiscal reforms, while also putting 9.2％ 55.4％ Residence tax 2,758 5.5％ priority on projects needed to Local consumption tax 1,083 -7.6％ revitalize the prefecture and ensure future development. Total Local tax allocations 1,320 -11.8％ The fiscal 2008 budget came to 10.8％ 1.4406 trillion From national coffers 1,524 -2.4％ 1,440,660,000,000 yen, 0.3％ yen Prefectural bond 1,560 4.1％ smaller than the budget for the previous year. Temporary fiscal measure bonds 601 21.9％ Pref. taxes, the basis of 11.1％ Retirement allowances 250 25.0％ fiscal self‐sufficiency, is more than 50％ 2.2％ Other 2,022 5.1％ 0.7％ Total 14,407 -0.3％ Pref tax Contributions Other revenue Other Pref bonds Local allocation tax From national coffers Local allocation tax and Prefectural tax Prefectural bonds temporary fiscal measures bonds Individual resident tax revenue has There was an increase of about 410 billion Chiba prefectural bonds outstanding are increased due to the shift in tax sources yen nationwide from newly created expected to increase by 6.1 billion yen YoY brought about by tripartite reforms, but expenses resulting from local region （ 4.1 ％ ） because of temporary fiscal corporate tax and regional consumption tax revitalization measures. However, Chiba measure bonds and retirement allowance revenues have fallen due to stagnant prefecture continues to hold personnel bonds. corporate profits and weak consumer costs for teacher and police, as well as behavior. As such, overall tax revenues are other expense, at low levels and so expects expected to be on par with levels from the a reduction of about 6.9 billion yen YoY. previous year. Chiba Pref.: Fiscal Conditions and Prefectural Bonds 6 2. Revenue and Expenditures （2）FY08 General Account Budget Expenditures YoY Expenditures（by purpose） Expenditures（by type） Expenditures（100 million yen） Change 6.6％ 8.4％ Mandatory expense 11.5％ accounts for 64％ of Personnel expenses 5,936 -0.6％ 2.3％ the total. Personnel 12.0％ 11.2％ expense in particular 5.8％ accounts for a large Social welfare costs 1,577 6.4％ 3.4％ portion（about 41％）. 2.7％ 27.4％ 3.5％ Public debt 1,717 0.5％ Total 12.7％ Total 1.4406 trillion 3.5％ 1.4406 trillion yen 24.4％ 6.8％ yen 7.9％ Ordinary construction 1,326 -8.1％ 2.2％ 5.9％ 7.5％ 11.9％ Supported 10.9％ 833 -3.1％ projects 64.1％ 29.1％ 8.7％ Stand‐alone 492 -15.5％ projects 9.5％ Mandatory expense Investment Others Personnel （education） Other General Affairs Welfare Sanitation /environment Personnel （police） Personnel（general staff） Social welfare 3,851 0.1％ Agriculture, forestry and fishery Commerce/labor Public debt Supplies Accounts brought out Civil engineering Police Subsidies, contributions, allocations Others Others Total 14,407 -0.3％ Education Public debt Others Ordinary construction （stand alone） Ordinary construction （supported） Personnel expenses Social welfare costs Ordinary construction Retirement allowances continue to increase, The portion shouldered by the prefecture has There was a reduction of about 11.7 billion yen but salary reductions and reforms of salary increased due to implementation of a health （ 8.1 ％ YoY ） due to the moving of land structures have been successful. As such, care system for the elderly 75 and older and readjustment projects to a special account and overall personnel expense was reduced 0.6％ to increased support for the disabled to become progress in reducing public works projects. about 3.6 billion yen. self‐sufficient. As such, social welfare costs increased to about 9.5 billion yen, or 6.4％ YoY. Chiba Pref.: Fiscal Conditions and Prefectural Bonds 7 2. Revenue and Expenditures （3）General Account Balance Overall revenue fell after Balance of Settled General Accounts （100 million yen） peaking in FY01 and deficits were recorded in FY02 and 20,000 140 FY03. 18,000 120 However, these deficits have 100 been erased since FY04 due to 16,000 Revenue/Expenditures 80 thorough cost cuts, salary cuts 14,000 Real Balance and other measures, as well as 60 increased tax revenues that 12,000 47 34 34 40 accompanied the economic 30 32 10,000 13 23 20 recovery. 12 19 8,000 0 -20 6,000 ▲33 -40 4,000 -60 2,000 ▲82 -80 0 -100 FY97 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 Revenue Expenditure Real balance FY97 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 Revenue 16,133 17,239 17,044 17,209 17,682 16,977 16,649 17,199 17,302 14,327 14,420 Expenditure 16,040 17,176 16,981 17,094 17,601 16,985 16,602 17,133 17,246 14,256 14,382 ※ From fiscal 2006 special accounts were Real balance 47 12 13 34 19 -82 -33 34 30 32 23 created for the settlement of local consumption tax.