OSAKA -- To forestall intervention by the central government, the cash-strapped Osaka Prefectural Government announced a 10-year restructuring plan Thursday that includes a reduction in prefectural officials and teachers as well as a suspension of regular annual wage increases for two years.
The plan requires the prefectural government, under severe financial restraints, to deal with revenue shortfalls that could reach 625 billion yen in fiscal 2002 alone if no measures are taken.
However, a prefectural official said the solo effort by the prefectural government cannot resolve the continuous revenue shortfalls because the current tax system for local governments must be changed.