Note 2-1

(1) Japan' s total tax revenues of national and local taxes combined have decreased drastically. After hitting a peak of 98.3 trillion yen in FY1991, they dropped to 84.2 trillion yen in FY1999 due to recession and a series of tax cuts. Though they increased slightly to 88.3 trillion yen in FY2000, they still remain at a low level. The total tax revenues for FY2001 are expected to decrease sharply from the preceding year, as national tax revenues came to 47.9 trillion yen, down 2.8 trillion yen from the preceding year. Meanwhile, total national expenditures increased from 70.5 trillion yen in FY1991 to 84.8 trillion yen in FY2001. As a result, the ratio of tax revenues to expenditures plunged from 84.8% in FY1991 to 56.5% in FY2001.