The Japanese national government is contemplating a plan to fully compensate local governments for revenue losses stemming from a potential reduction in the consumption tax. This proposal will be discussed at an upcoming meeting between national and local officials. The move aims to address concerns from local administrations regarding the financial impact of lowering the consumption tax, a measure being considered to stimulate the economy. Full coverage by the national government would alleviate the burden on prefectural and municipal budgets. Details of the plan, including the specifics of compensation mechanisms, are expected to be unveiled during the meeting. This signals a potential shift in fiscal responsibility, prioritizing national support for local economies. The government hopes this will facilitate agreement on the consumption tax reduction.