The second subgroup (subgroup leader: Professor Toshihiro Ihori, University of Tokyo) of the Study Group on the Financial System (headed by Professor Keimei Kaizuka, Professor Emeritus at Tokyo University and Director of the Center for Advanced Research in Finance) established by JBA published the “Future Public Finance” report on July 18. The composition of the report is as follows.
| Chapter 1: | Desirable Future Public Finance—Recommendations on How Local Governments should Collect Funds from External Sources |
| Chapter 2: | Desirable System for Local Government Bonds—Market Discipline |
| Chapter 3: | Roles of Government Funds and Private Sector Funds concerning Local Government Bonds |
| Chapter 4: | Incentives for Monitoring Local Governments |
| Chapter 5: | Characteristics of the Local Government Budget System and an International Comparison |