OSAKA — In an attempt to avoid bankruptcy or fiscal intervention from the central government, the Osaka Prefectural Government submitted a 10-year reform program Friday that includes cutting 3,000 jobs and abolishing its Bureau of Public Enterprise.

The administrative and financial reform program, to start in April, calls for the prefectural government to cut 3,000 of its current 15,500 administrative employees. In the past six years, 1,400 jobs have been cut amid the worst financial crisis of any prefecture in the country.

Prefectural officials said local government productivity will be improved by 10 percent in the next two years via information technology.

As well as the personnel cuts, public works expenditures will be reduced by 10 percent, or 240 billion yen, in the next 10 years, they said.

Local government-affiliated corporations will also be reduced from 79 to 40 in the same period with the elimination of a further 1,000 jobs and an associated saving of 20 billion yen for the prefectural government over the period, they said.

These efforts will see the prefecture’s revenue shortfall reach 31.5 billion yen in 2007, compared with the estimated 80 billion yen shortfall that would occur without the reforms. The prefecture’s amortization fund will run out by 2007 and the predicted 80 billion yen shortfall is well above the 64 billion yen-level that would enable fiscal intervention by the central government.

The program states that the prefecture can just avoid bankruptcy, but that the accumulated amount of prefectural bonds will reach 5.15 trillion yen in 2010.

The accumulated amount of these bonds is estimated to reach 4.28 trillion yen at the end of the current fiscal year.

Another feature of the plan is concluding all loss-making development projects conducted by the Bureau of Public Enterprise by fiscal 2011.

Although the bureau has a separate account from the prefecture’s general account, it is estimated the bureau will have a deficit of 10 billion yen at the end of fiscal 2002, growing to 207.9 billion yen by fiscal 2011 if no measures are taken, the officials said.

Concluding the projects and closing the bureau will eventually cost the prefecture 23.3 billion yen, they said.

Since its establishment in 1960, the bureau has developed several new towns and industrial areas in the prefecture.

In 1987, however, the value of bonds the bureau issued exceeded its funds for the first time and the difference has increased since.

Officials attributed its failure to the burst of the bubble economy and the subsequent decline in land prices. They said these factors could not have been predicted.

The prefecture also pledged not to start new development projects that require buying land to be sold later.

The reform plan will go before the prefectural assembly for approval in September.

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