STATEMENTS

Comment on the budget bill for the fiscal year 2002

25 December, 2001

Tadayoshi KUSANO
General Secretary, RENGO

  1. In the extraordinary cabinet meeting on 24 December 2001, the government determined the budget bill for the fiscal year of 2002. The general account amounts to 81.23 billion yen and decreases by 1.7% from the previous year, while the general expenditure amounts to 47 trillion 547.2 billion yen and 2.3% less than the previous year. The annual revenue is planned to be covered by the national bond of 30 trillion yen and the tax revenue of a little less than 47 trillion yen. Sticking to the principle of "the limit of the national bond at 30 trillion yen", the bill gives top priority only to annual expenditure control. It gives up the responsibility of the government for responding to the worst ever unemployment problem and an overall revision should be made to it.

  2. The general expenditures, such as public works, economic cooperation, energy measures, small and medium-sized enterprises measures and others, with the exception of social security (+3.8%) and education and technology promotion (+0.3%), serve as a little more than 5 - 10% of curtailment. However, the items of the curtailment are decided with a concept of ministries' vertical division and they are completely insufficient in terms of prioritizing the budget.
    In the area of employment measures, progress was seen in the expansion of public and consigned vocational skill development projects and the strengthening of measures for unemployed high school/university graduates. However, the size is not enough. In the area of social welfare and medical services, the expansion in nursery is seen, but the postponement of the medical services reform imposes additional burden on patients and the insured.
    About the annual revenue, the government sticks too much to national bond of 30 trillion yen, while tax revenues decrease by 7.7% compared with last year on the assumption that zero-rate economic growth. It has made it consistent by the hidden debts of 2 trillion yen or more, such as special accounts for foreign exchange and grant tax.

  3. Now, working people are faced with the nominal minus growth for four consecutive years and the worst ever unemployment and employment/living situation is critical. Measures which the government should incorporate in the budget of the 2002 fiscal year are those that cancel the uneasiness of the people about the future and employment and create the society with bright hope to the future. In a more concrete sense, they are strong employment measures to improve unemployment and social security measures to strengthen the bases of pension, medical services and nursing with a view to recovering consumption.

  4. Rengo has continued claiming, "Employment measures are the most effective business stimulating measures and they are also what the structural reform should aim at." The budget in the fiscal year 2002 must be restructured as aiming at employment and living security, focusing on the government responsibility for job creation and the reduction of the unemployment rate and the expansion of consumption by strengthening social security bases. And Rengo strives for realizing its demands to recover the sense of security all over Japan.

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