STATEMENTS

A comment on the government's 2000 budget proposal

December 24, 1999

Kiyoshi SASAMORI
General Secretary
Japanese Trade Union Confederation (JTUC-RENGO)

  1. The government adopted its 2000 budget proposal at its cabinet meeting on 24 December. The general account of the proposed budget is about 85 trillion Japanese Yen which is highest ever (3.8% raise compared to the last year's original budget). The annual expenditure is about 48 trillion Japanese Yen, which is 2.6% raise compared to last year. Annual income will be generated by issuing about 32 trillion-Yen national bonds. According to the Minister of Finance Mr. Miyazawa, this budget will not require revision.

    However, this proposed budget lacks the measures which could breakthrough the current unemployment problem and solve the uncertainty in people's lives. The proposed budget has to be amended completely.

  2. RENGO has demanded a budget which includes measures to solve problems in life such as job creation, recovery in consumption and stability of social security infrastructure. It has demanded 2% of economic growth and reduction of the level of unemployment to less than 4%.

    The government's budget proposal for the year 2000, which was adopted at the cabinet meeting hardly includes any steps to create new employment. Allowances for unemployment insurance and social security in the budget are not at all sufficient. Public works should be emphasised to revitalise local economy and stabilise people's lives. However, public works in the proposed budget only includes improvements of harbours, fish ports and development of agricultural and rural areas, afforestation, and flood control. They are based on the jurisdiction of the central ministries and their agencies. Measures which are required by people and local communities are not included in the proposed budget.

  3. The social security system should be reformed. As for these items, a budget for the social security is increased by 4.1% whereas a reform of the national pension scheme was postponed. The Budget for supplying the business of nursing insurance is insufficient. It does not show a complete reform of the medical system. They will increase medical treatment fees on patients' expenses. Patients are required to pay much more as their part for expensive medical costs and meals at a hospital. The age limit for the child allowance will be extended to 6 years old; however, in order to cover the additional costs, the government will reduce tax deduction for younger dependants by 100,000 Yen for families whose children go to primary school and junior high school. As for environmental measures, actions such as treatment of waste, recycling methods are not sufficient. The budget which neglects people's lives will not lead to economic recovery and will not resolve the insecurity in people's lives.

  4. Workers strongly call for steps which could breakthrough the serious crisis in employment and in life such as the pro-longed economic recession, decline of actual wages for past three years and the worst rate of unemployment after the World War II.

    RENGO listens to people's voices and will demand at the next ordinary diet session the government and the political parties the implementation of measures which improve people's lives such as resolving high unemployment through the creation of employment, establishing a reliable pension, reforming medical and nursing schemes, and strengthening environmental measures.

HOME
Statments