With corporate tax revenues falling amid the deepening recession, 38 of the 47 prefectural governments have compiled fiscal 2009 budgets featuring the largest-ever falls in tax revenues, according to an analysis of the budgets through Tuesday.
All 47 prefectures anticipate tax revenue declines in fiscal 2009 from initial projections for fiscal 2008, which ends March 31.
Aichi Prefecture, home to Toyota Motor Corp., expects the largest drop at 29 percent. Revenue falls of more than 20 percent are anticipated by six other prefectures.
As for corporate enterprise and income taxes, the prefectures expect revenue falls ranging from 23 percent to 65 percent.
Tax grants from the central government are expected to decrease in 28 prefectures.
The analysis also found that 28 prefectural governments plan to increase spending on job protection and other measures to prop up local economic activity.
Bonds planned to be issued by the 47 prefectures, including those to cover revenue shortages, total ¥7.37 trillion, up 25 percent from their initial fiscal 2008 budgets.
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