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04/12/2008

14 municipalities freeze road construction due to abolishment of road-designated taxes

Shiga Prefectural Government on April 11 unveiled how 26 municipalities in Shiga are dealing with abolishment of road-designated taxes which is now known as a major issue at national level.

14 municipalities out of 26 have decided to freeze road construction due to predicted decrease of road-tax revenues. 10 other municipalities will make decisions based on watching how the current situation changes. 

Otsu City, included in the former, will face deficit of 700 million yen. If projects other than road construction are deeply affected, the deficit will expand to 1 billion yen. Grants coming from the central government, used for roads, city planning, education and festivals, stem from road-designated taxes.

"Road construction is necessary, but the only project we can put off is the road construction," says a city official.

(Chunichi Shimbun, April 12)   

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