Four ministers decided Tuesday to set numerical targets as part of efforts to improve the flow of funds between the central government and local governments, with Finance Minister Masajuro Shiokawa proposing a 4 trillion yen cut in subsidies as part of the plan.
The agreement on the targets was reached in a meeting attended by Shiokawa, public management minister Toranosuke Katayama, Chief Cabinet Secretary Yasuo Fukuda and economic and fiscal policy minister Heizo Takenaka.
The ministers agreed to include the goals in a report to be compiled later this month by the Council on Economic and Fiscal Policy, a key economic policy-setting panel.