OSAKA -- The city of Osaka unveiled on Thursday a belt-tightening 1.78 trillion yen draft budget for fiscal 2003 featuring cuts in subsidies, public projects and personnel outlays.
The general account budget bill represents a 2.2 percent reduction from last year, the second straight year of decline in the initial budget.
The municipal government, which has already declared a state of fiscal emergency, plans to send the initial fiscal 2003 budget and a 48.53 billion yen supplementary budget for fiscal 2002 to the city assembly after it goes into session Feb. 20.
For fiscal 2003, the draft budget projects substantial falls in three major categories of tax revenues.
City officials say they expect a major fall in real estate tax revenues as a result of lowered land-value assessments amid the decline in property prices.
Corporate and personal tax revenues are expected to drop because of a projected worsening in corporate earnings and an aggravated employment picture.
Overall, the draft budget anticipates a 6.3 percent fall in tax money.
To make up for the shortfall, the city plans to increase public borrowing by 8.2 percent, bringing the overall public debt level to 5.56 trillion yen.