The ruling coalition partners Liberal Democratic Party and Komeito have started discussions on how to proceed with the plan to free up the use of revenues from road-related taxes. A consultative body, made up of officials from both parties, will serve as the ruling bloc's decision-maker on the issue. It should do its utmost to prevent the move to free up road-related tax revenues from becoming an effort in name only.
On March 27, Prime Minister Yasuo Fukuda announced the plan to free up road-related tax revenues from fiscal 2009. He did not hold prior consultations with LDP officials for fear that his plan would be quashed. The plan became official government policy May 13 when the Cabinet made the decision.
In the fiscal 2008 budgets, the nation has ¥5.4 trillion in funds — about ¥2 trillion for the central government and about ¥3.4 trillion for local governments — from road-related taxes. In principle, these funds must be used only for road-related projects. If they are freed up, they can be used for such purposes as education and social welfare.