(The Partial Allocation of the Local Finance Equalization Grant in a Rough Estimate)
Article 1. The national government may allocate a part of the local finance equalization grant counted up in the national budget (hereinafter to be referred to as the "grant" ) in April, 1950 to the Do, Fu and prefectures and cities, towns and villages (hereinafter to be referred to as the "local bodies" ) in accordance with the provisions of this Law, as a temporary measure until the day when the law concerning the system of the local finance equalization grant is enacted and comes into force.
2 The whole area of To shall be considered as Do, Fu or prefecture in regard to the allocation of the grant to Do, Fu and prefectures, and its area comprising the special wards shall be considered as a city, town or village in regard to the allocation of the grant to cities, towns and villages.
3 In applying this Law, the all-affairs associations of towns and villages shall be considered as towns and villages.
(Allocation Amount in a Rough Estimate)
Article 2. The amount which may be allocated in a rough estimate to local bodies in accordance with the provision of paragraph 1 of the preceding Article shall be the amount listed under each of the following items respectively:
(1) Do, Fu and prefectures 11,900 million yen
(2) Cities, towns and villages 8,100 million yen
(Date for the Computation of the Amount of the Grant)
Article 3. The amount of the grant to be allocated to each local body shall be computed as of April 1, 1950.
(Disposition of the Grant in case of Abolition, Establishment, Division, Amalgamation or Alteration of Boundaries)
Article 4. In cases where the abolition, establishment, division, amalgamation, or an alteration of the boundaries of a local body has been effected after the date mentioned in the preceding Article, the grant to that local body shall be disposed as provided for under the following items:
(1) In cases where the whole area as a local body has become an area of another local body on account of abolition, establishment, division or amalgamation, the amount of the grant which ought to have been allocated to that local body before the abolition, establishment, division or amalgamation, shall, after the date of the abolition, establishment, division or amalgamation, be allocated to another local body to which the area of that local body has newly come to belong.
(2) In cases where the area of a local body has been divided on account of abolition, establishment, division or amalgamation, and in cases where its boundaries have been altered, the amount of the grant which ought to have been allocated to that local body before the abolition, establishment, division, amalgamation, or the alteration of boundaries shall, after the date of the abolition, establishment, division, amalgamation, or the alteration of boundaries, be divided in proportion to those amounts of grants which would have been allocated to such independent local bodies as could have hypothetically existed as of April 1, 1950 over the areas affected by the abolition, establishment, division, or the alteration of boundaries or over the area of that local body excluding the area lost by the alteration of its boundaries, and the amount so provided shall be allocated as provided for by a Prime Minister's Office Ordinance to the local body or bodies to which the areas affected by the abolition, establishment, division, or the alteration of boundaries have come to belong, or to the local body to which the area lost by the alteration of its boundaries originally belonged.
(Computation of the Amount of Grant)
Article 5. The amount of grant to be allocated to each local body shall be computed on the basis of the total amount of the local distribution tax (excluding the fifth category distribution amount) and the national burdens and national subsidies (limited to those which are specified by the Prime Minister) which Do, Fu or prefecture concerned received in the fiscal year 1949-50 in regard to Do, Fu and prefectures and on the basis of the amount of the local distribution tax (excluding the special distribution tax) which the city, town or village concerned was received in the fiscal year 1949-50 respectively. However, with respect to the local bodies considered specially necessary in view of the estimated amount of local tax revenue in the fiscal year 1950-51, the amount of grant to be allocated to those local bodies may be increased or decreased to meet revenue changes resulting from the revision of the local Tax Law.
(Relation to the Law concerning the System of the Local Finance Equalization Grant)
Article 6. The grant allocated in accordance with the provisions of this law shall, after the time when a law concerning the system of the local finance equalization grant is enacted and comes into force, become a part of the local finance equalization grant to be allocated in accordance with the provisions of that law.
(Return of the Grant)
Article 7. In cases where the amount of the grant to be allocated to each local body for the fiscal year 1950-51 will be determined after the time when a law concerning the system of the local finance equalization grant is enacted and comes into force, if there exist the local bodies to which the amount of grant already allocated exceeds the amount so determined, the local bodies concerned shall without delay return such excess amount to the State.