Top �� What's up around the Prime Minister �� October, 2002

Submission of the Final Report of the Council for Decentralization Reform Wednesday, October 30, 2002 Prime Minister Koizumi receives the final report of the Council for Decentralization Reform from Chairman Taizo Nishimuro. At the Prime Minister's Official Residence, Chairman Taizo Nishimuro of the Council for Decentralization Reform handed to Prime Minister Junichiro Koizumi the final report on modalities for administrative work and projects in accordance with a division of labor between the central and local governments and a review of state subsidies entitled "Opinions on Modalities for Administrative Work and Projects - Aiming for Self-Reliant and Independent Local Communities." In June this year, Prime Minister Koizumi instructed the Council to prepare a draft plan by October on modalities for administrative work and projects of the central and local governments that would lead to a reform of the trinity of local allocation taxes, state subsidies and the transfer of tax resources, as well as on the abolition of state subsidies, based on the "Basic Policies for Economic and Fiscal Policy Management and Structural Reform 2002." In response, the Council compiled this final report at its meeting on October 29. This final report indicates guidelines for reviewing projects in five sectors: social security, education and culture, public works, industrial promotion, public safety and others. In particular, the report calls for a phased reduction of 500 billion yen in the state subsidies for compulsory education from FY2003. Upon receiving the final report, Prime Minister Koizumi stated, "I would certainly call for reform to be advanced in this direction." The report is to be presented to the Council on Economic and Fiscal Policy and a concrete policy is to be decided.