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Local Government

Local gov opposes central gov funding projects in Japan

By Alice Kok | 23 March 2009

A survey by Japan’s largest newspaper found that almost two thirds of local government officials think that the central government should abolish a system that requires local governments to cover a portion of expenses for central government projects.

Many local government heads are dissatisfied with the central government’s failure to provide a sufficient explanation on why they should shoulder the financial burden. One third said the system obligated local governments to contribute too much to central government projects.

Governor Issei Nishikawa said that abolishing the system “will likely result in local governments competing to win central government projects in their jurisdiction.”

Among the 24 local government heads who did not support abolishment, four said the current system should continue only after a review, 19 gave “other opinions”, while one governor did not give an answer. No one thinks that the system should continue just as it is, found the report.

When asked in a multiple-choice question what they believed were the defects of the system, 48 local government heads answered the central government has not consulted enough with local governments; 41 said the system was not transparent; and 38 said it went against the principle of decentralisation.

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