Prime Minister Noda Yoshihiko says the Fiscal 2012 draft budget represents a good package combining financial reconstructive measures with economic growth, calling it 'a budget of the first year of Japan's revival'. Despite his pride, it constitutes an appropriation to favor Big Business in real term, a budget to benefit the conservative. The ruling Democratic Party of Japan (DPJ) has taken a completely opposite policy line, which is characterized by 'priority from human beings backing to concrete buildings', which contradicts the party's pledge to insist on a change from politics of the long ruling Liberal Democratic Party, a platform 'priority from concrete buildings to human beings'.

BUDGET TO FAVOR CONSERVATIVES AND BIG BUSINESS

The proposed budget amounts Yen90.3339 trillion in terms of general account, added by special accounts of the disaster rehabilitation efforts required by the earthquake-hit region of Tohoku, which counts Yen3.8 trillion, and another for subsidizing government bonds to fill the shortage of pension payment, a half of the basic fund of which is incurred by the state, which counts Yen2.6 trillion Yen. The budget total is the biggest ever, reaching approximately 96 trillion of Yen. The government bonds for pension payment means 'a hidden debt' to be repaid, for instance, by the consumption tax which is to be surged in a few years. The arrangement will cause problems in the future.

Budget for Public Construction and Military

The DPJ is returning to the real, conservative politics. One of the phenomena is an allotment of 5.6 billion Yen for construction of the controversial dam at Yamba, Gunma Prefecture, northwest of Tokyo. The DPJ had insisted to cancel the project, but recently it made a decision to revive the frozen project. Another is resumption of the road construction project which will surround Tokyo metropolitan district as well as a new construction plan of three super-express Shinkansen railway service lines (Hokkaido, Hokuriku and Kyushu). In terms of the public construction works the total budget reaches approximately Yen5.3 trillion, a hike by 6.6%, compared with the figure of last Fiscal, if is included the special account of reconstruction projects for the disaster-hit region.

In the military field, Yen60 billion was allotted to purchase four units of F35 aircraft to be deployed as the next fighter and training equipment for the jets. Relevant budgets, including a fund to be applied to the earthquake-stricken areas, count over Yen4.8 trillion, a surge by 1.1% in comparison with that of last fiscal. As for F35 fighters, the government plans to possess in total 42 units, which costs at least Yen1.6 trillion. The total sum will be imposed on taxpayers in the coming years.

Now let's look at pensions. As for the basic pensions, a benefit for recipient will decrease by 0.3% from coming April on the ground that prices in general go down. Another reduction by 0.9% is scheduled to be made from coming October as part of discrepancies found in the previous years due to declined prices.

'Child Care Allowance' will be reviewed, too, for reduction. In terms of budget size of social services, the total counts approximately Yen29 trillion, a very slight growth by 0.4% in comparison with that of last year.

Budget for Nuclear Power and Space Industries

People harshly criticized about the nuclear industry last year, which results in the compilation for the program of fast breeder reactor Monju. The total is limited to Yen17.5 billion to pay for maintenance costs and closure of its public service office. The total sum of Yen340.5 billion, a slight decline, is allocated to the ministries of education and science & technology and of economy, industry and trade.

Under these circumstances we, the New Socialist Party, are determined to continue fighting against the Noda government which keeps depending on nuclear power. It wants to waste over 10 trillion Yen on the nuclear fuel cycle program. The policy must be abolished immediately.

Premier Noda has expanded the budget scale of Special Package to Revive Japan, which is in jurisdiction of the premier, to Yen1.578 trillion, which was originally estimated as 700 billion Yen. He is particularly interested in establishing the Japanese-version GPS (ground positioning system), clinging to the project to develop quasi-zenith satellite system. The budget sum is 10.6 billion Yen, including the special account of 4.1 billion Yen. Another special allocation was made, amounting 4 billion Yen for programs to develop intelligence satellites. These decisions indicate that the government is eager to commit in the space projects in the economic and military terms.

A Half of Revenue is of Debts

Newly issued government bonds occupy 49% of the revenue for the general account, which reaches Yen44.244 trillion. The figure exceeds that of tax revenue, which is Yen42.346 trillion. For consecutive three years the government bonds surpasses the tax revenue amount in the budget. The balance of accumulated total of issued bonds will reach approximately Yen709 trillion as of the end of 2012 Fiscal. The total of state's debts, including loans, exceeds 1,000 trillion of Yen.

The government, financial circle and mass media claim that the consumption tax must be heightened to break through the financial crisis. Looking into the revenue sources in the general account, the consumption tax is estimated to bring an increase by 224 billion Yen, while the corporate tax, only 1 billion as of the end of Fiscal 2011, after calculating supplementary budget arrangements. It is because that the corporate tax rate was cut from 30% down to 25.5%.

Only through establishing a new type of government which would rely on the constitution to guarantee people's life, social services will be improved and financial deadlocks will be settled in the drastic way.


January 17, 2012