Prefectures face big interest burden

JIJI

Prefectural governments faced a total interest burden of ¥57 million as of Nov. 1 on loans from private financial institutions to cover a delay in getting the September portion of tax revenue grants from the central government, internal affairs minister Shinji Tarutoko said Thursday.

Appearing before the Lower House Internal Affairs Committee, Tarutoko also said the central government plans to fully shoulder the loan interest burdens.

Tax revenue grants are doled out in April, June, September and November.

The payment of the third tranche this year was made in three installments between September and November because the central government faces money shortages due to the delay in passing the deficit-covering bond bill.

This forced 25 prefectures to take out loans from financial institutions to make up for the delay in the tax grant payments and incurring an interest burden.