In order to promote decentralization, we must reduce authoritative participation of the central government over prefectures and municipalities, such as entrusted local governmental function by the central government, as possible as we can, and must establish an autonomous system what both municipality as fundamental local government and prefecture as broad local government are responsible to inhabitants in conformity with self-decision and self-responsibility. To do that, we should transfer fiscal right from central government to local government. In the concrete, to expand self-source of revenue of local governments, and establish fiscal authority throughout the review of the taxes allocated to local governments and state subsidies. And, so taht local governments can fit for the load of decentralization, we need to review whole of the local governance system. For example, the size of local governments and the mean of their merging, regulation assigned by the central government or by the national acts, authorities and relation between the executive and local ligislature, elective system of head and member of legislature of local governments, establishment of open-information and external inspection, and so on. The Committee for the Promotion of Decentralization, set up in May 1995, is assigned to supervise the project that the Government is going to make on the Committee's advise in its term of service. What the Committee must do is recommending some policies that can be put into operation to promote decentralization as early as we can.
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