The reform of local public finance was carried out along with the merger of municipalities in early 2000's. The tax revenue resources were devolved from the central government into the local ones, while the national treasury disbursement and local allocation tax were reduced. At the same time some special measures have been allowed to accelerate the merger. It has resulted in consequences that revenue of the merger experienced municipalities has swollen.
We estimate the desirable level of revenue and local allocation tax from the data of the merger non- experienced municipalities by population scale. With applying them into the merger experienced ones by scale, we assess the degree of swelling in the revenue and local allocation tax.
As the result we can see that the more the number of composed cities and towns before the merger and the less the share of the most populated city among them, the more the revenue and local allocation tax per capita of the merger experienced municipalities. The excess of revenue amounts to \2.5 trillion and local allocation tax \1.1 trillion. The moratorium placed by the special measures promoting the merger will finish in the next several years. The merger experienced municipalities must orient themselves toward the similar level of public finance management as the merger non-experienced ones as soon as possible.