This paper treats the the report of local decentralization promoting committee, which was published in March 1996. The report has five
chapters including the meaning of decentralization, the reform of intergovernmental relations, relations between prefectures and communities, the working report of the regional session and of the living session. This report mainly proposes the abolition of 'Kikan-Inin-Jimu', agency delegated functions. In this paper, we estimate the meaning of this proposal, but point out some quetions in financial aspects. We emphasize that the task of decentralization depends on much the reform of local government fiance.