Its problems are similar to those of New York.....falling tax revenues mean the city no?
Its problems are similar to those of New York.....falling tax revenues mean the city no longer has enough income to pay for its social services. Unlike New Yorkers, however, the people of Tokyo have not so far had to endure cuts in services. There seems little chance of Tokyo going bankrupt. In Japan a local government producing deficits beyond a certain limit is liable to come under central government control to put its finance in order. Even so, Tokyo may have a deficit in the current financial year of 380,000 million yen (more than 600 million sterling).
Unlike New York, Tokyo and other financially-troubled local governments in japan have not laid off workers. But the Tokyo government has already cut overtime for 240,000 city employees and plans to give no more annual rises to city workers who are near retirement age.
Some lifts in city offices have been stopped to save electricity. Lighting is switched off during lunchtime . Air conditioning or central heating in city offices is being turned on one hour later in the mornings.
Payment of city employees 'wages was delayed for three days in September to profit from bank interest.
Tokyo has been hard hit by recession because it depends heavily on corporate taxes. It's balance sheet has been in the red since 1962.
The National government puts the blame on Governor Ryokichi Minobe's spending on welfare for the poor and the handicapped and the payment of higher salaries to his subordinates than those of state government employees.
When Governor Minobe was re-elected for a third four-year term in April, the National and Tokyo governments made concerted efforts to improve the city's tottering financial situation.
The national government int reduced a bill for local bonds issues to supplement the decreased tax incomes of local governments.
Tokyo is now seeking approval to issue more local bonds as apart of its plan to trim its deficit 100,000 million yen (160 million sterling) by the end of the fiscal year in March.
SYNOPSIS: The world's most populated city -- Tokyo. At the moment the Japanese capital is facing the worst financial crisis in its history, brought on by economic recessions.
Its problems are similar to those of the world's second most populated city, New York....falling tax revenues mean the city on longer has enough income to pay for its social services. So far, however, the people of Tokyo have not had to endure cuts a sits American sister city has. Tokyo has been in the red since nineteen-sixty-two, but the chances that the city will actually become bankrupt are slim .
The blame for the cash crisis has been put on Tokyo's Governor Ryokichi Minobe. He has been accused of over- spending on welfare and salaries. The Tokyo's government blames state-controlled local taxation, financial restrictions and nationwide inflation since the nineteen-seventy-three oil crisis. Although no services have been cut, workers have been made to comply with economic such as no overtime,stopping lifts to save a electricity, switching off lights during lunchtime and curbing central heating and air-conditioning. Tokyo is trying to get out of debt by using local government bonds.
The Tokyo crisis differed from that of New York because of Japan's centralised tax and administrative system. Even so, Tokyo's deficit in the current financial year, if it can not obtain enough bonds, will bee nearly four hundred million yen. Japan is also experiencing workers' strike.