Prime Minister Junichiro Koizumi's latest proposal on cutting subsidies to local governments has met fierce opposition from within his ruling Liberal Democratic Party -- an indication that both he and the legislation face a rough road ahead.

And if that wasn't enough, a dispute within his Cabinet flared up again Friday, pitting Finance Minister Masajuro Shiokawa against home affairs minister Toranosuke Katayama over the amount of power local authorities should be granted over taxes.

All this comes on the heels of Koizumi's announcement Wednesday of a controversial plan to cut subsidies to local authorities by about 4 trillion yen by 2006.