Note 3-46

46 governments' shares of projects are partially included into the standard financial demand in two ways. In one way, called the "debt-service system," part of such costs are put into the debt-service category. In another way called "public modification system," they are put into the investment expenditure category. Examples subject to the "debt-service system" include local bonds for rural development projects and special regional financial measures. Those subject to the "public modification system" include bonds for park and greenery development, and comprehensive regional development projects. When large-scale public projects are implemented in certain short periods of time to seriously affect finances at local governments, these measures allow actual costs of such projects to be reflected in the calculation of the local allocation tax in a "dynamic" manner. The local allocation tax is also calculated in accordance with objective indicators such as population and land sizes in a "static" manner.