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Government plans 1 trillion in local government grants

Date Posted: 2009-12-24

The central government in Tokyo is finalizing initiatives to establish more than 1.1 trillion in new grants targeted to local governments. The plan falls under the Fiscal 2010 State Budget, and leaders say the funds will be used to replace existing subsidies now aimed at sewage, road and other projects.

Unlike subsidies now in place, most of which have stringent limitations and restrictions on their use on specific projects, the central government says the use of grants will be basically left in the hands of local municipalities. The Finance Ministry is to set the size of grants from the Ministry of Land, Infrastructure, Transport and Tourism at 1 trillion.

Another 100 billion will come from grants sponsored by the Ministry of Agriculture, Forestry and Fisheries. The grants are all being developed at the behest of the ruling Democratic Party of Japan.


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