POINT OF VIEW/ Ryoichi Nemoto: The time is ripe to rethink budget allocations

All governors across Japan, without exception, are opposing the abolition of the temporary higher gasoline tax rate.

It is unnatural in a democracy for all governors to agree on the same issue. Are they afraid of retaliation by the central government? Or do they fear that their tax revenues would be cut off if they said otherwise?

Furthermore, most mayors are also joining in the chorus. There is something creepy in the way practically all local government leaders are calling in unison for the maintenance of the higher tax rate.

Until last year, I served as the mayor of Yamatsuri, Fukushima Prefecture, for 24 years, spanning six terms. The town has attracted public attention for its declaration not to merge with other municipalities.

As a former mayor who took the initiative to advance various reforms, I wish to clearly state where I stand on the issue: The temporary tax rate must be abolished and revenues earmarked for road construction re-examined.

For centuries, making roads has been an earnest wish of all people, and it is a grand national strategy.

Regardless of maintaining or abolishing the temporary tax rate, road construction must be advanced. Roads must be built where they are needed. There are no two ways about it.

Even if the temporary tax rate is abolished, since road budgets in the national budget are made up of our taxes, local governments have equal rights to demand funds. They are not something they have to beg for. Local governments are urged to positively demand funds from the central government to build necessary roads to which they are entitled.

Road construction is primarily a responsibility for the central government. It is important for the government to prioritize necessary roads. For that, transparent and objective indexes are needed.

How should they be established? This is the duty of the government. The order of priority must be just and fair. If the decision to build roads is actually affected by a handful of bureaucrats and lawmakers with vested interests, it is deplorable.

Once indexes are established, requests for road construction by local governments would be a matter of public interest. In turn, decisions on whether the requests are reasonable would be made in the open for all to see.

As a result, even if a road project of one's hometown is given low priority, no one can complain about it. Local governments must not only think about themselves. They are urged to look at the big picture from the broad standpoint of how Japanese roads ought to be.

Political leaders should also take to heart how painful an increase in gasoline prices is to citizens. They should also understand how the abolition of the higher temporary rate on gasoline and other taxes within the budget earmarked for road construction would considerably alleviate the burden on citizens.

Minshuto (Democratic Party of Japan) wants to scrap the temporary tax rate and include revenues earmarked for road construction in the general account budget.

A Liberal Democratic Party member let out that the party does not want to give up its vested interests in road construction projects.

I disagree with both sides because I doubt that the attempt would work if tax revenues for road projects were incorporated into the general account budgets of local governments, who in turn would be left to advance road and school construction projects on their own. This is because, unfortunately, local governments lack the ability to make such decisions.

Depending on governors and mayors, local governments could invest too heavily on specific areas and neglect others. As a result, gaps between local governments would get wider.

First, the temporary tax rate should be abolished. Second, instead of incorporating the funds into general account budgets of local governments, a highly transparent system to provide subsidies for projects should be introduced.

We have reached a crossroads to re-examine the allocation of the national budget as a whole. This is an ideal opportunity to strengthen decentralization in the true sense and transcend regional egotism.

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The author is former mayor of Yamatsuri, Fukushima Prefecture.(IHT/Asahi: March 27,2008)