Earlier this month, Koizumi reportedly instructed Nobuteru Ishihara, the minister in charge of administrative reform, to consider a major reduction in spending on the corporations. Ishihara is leading a review, and the government plans to compile a report in June. Thursday, Koizumi promised to redirect auto-related tax revenues. By law, they are set aside for road construction projects. The taxes are estimated at 5.8 trillion yen for the 2001 fiscal year.
Critics say they are a funding source for unnecessary, pork-barrel projects.
But he has promised reforms for what he calls a symbolic issue. Koizumi admitted his proposal faces strong opposition from members of his own party. He said he wanted to reach an agreement with the ruling Liberal Democratic Party before the Upper House elections in July. The road-tax issue is a key component of Koizumi's reforms. The prime minister hopes putting them to other uses would make the budget efficient.