Two-thirds of central government jobs currently assigned to prefectural governors and heads of municipalities should be transferred to local authorities, an advisory panel to the prime minister said July 8.

The proposal was among recommendations put forward by the advisory panel to shift administrative functions to the local level as part of Prime Minister Ryutaro Hashimoto's reform efforts. The Local Autonomy Law currently identifies 561 functions that it obliges local authorities to carry out on behalf of the national government.

The panel, apparently facing resistance from the Finance Ministry, refrained from proposing transfer of any budgetary authority to local governments. Currently, prefectural and municipal governments rely heavily on subsidies from national coffers. This severely restricts local autonomy.

Reviewing the allocation of tax collection and budget compilation authority between the national and local governments had been a key item on the panel's agenda. Instead, the panel recommended that the central government ease requirements for local governments when they apply for subsidies under 100 administrative programs.

The bulk of duties recommended to be left to prefectural governments include mapping out land use, approving private schools, tasks related to licenses for school teachers and restaurant owners, approving medical institutions, nursing homes and welfare facilities for children, and ordering moneylenders to halt their businesses.