- On 27 March 2002, the House of Councilors passed the fiscal 2002
budget by a majority of agreeing governing parties. The budget is
characterized by a cut in public investment and priority to seven
areas. This is an austere budget with the 81.23 trillion yen general
account (-1.7% to the previous year) and 47.5472 trillion yen general
expenditure (-2.3%).
The budget does not include sufficient measures to respond the worst
unemployment rate of more than 5% since the war. It also lacks active
measures to wipe out the sense of insecurity and the pain in living
and employment, while increasing the burden of patients on health
care expenses. Rengo strongly opposes to the budget, which was approved
against the objection of opposition parties and does not pay attention
to the lives of the people.
- The budget keeps the promise of the bond issuance not more than
30 trillion yen by increasing hidden debts. It includes a cut in public
investment, but maintains the framework of distributing public works
as in the past. Therefore, it does not deserve to support the structural
reform. Moreover, the cap of large sum health care expense has been
increased, the age applicable to geriatric health care has been shifted
up and consequently the people have been given more burdens. The budget
gives priority to fiscal balance and makes light of the people's lives.
In addition, the government and the governing parties refused the
discussion on a proposal to restructure the fiscal 2002 budget made
by the opposition parties which included 1.5 trillion yen for measures
to create jobs and support those bringing up their children and caring
their family members.
- Rengo has been requesting for restructuring the budget framework
so that it includes strong measures to lower the unemployment rate,
support the unemployed, improve social security systems and stimulate
personal consumption. Based on Rengo's request, the four opposition
parties submitted a bill on the restructuring of the budget. However,
the government completely ignored the voice of working people and
had the budget passed without any amendment. This budget or the deflation
measures, which was announced on 27 February 2002, cannot restore
the economy nor create the stability in living.
- Rengo requests the government to change its present policy giving
top priority to fiscal reform and to formulate urgent economic and
employment measures aimed at recovering economy, creating jobs and
strengthening the fundamental of social security. Such measures should
be backed up by supportive supplemental budget. To this end, Rengo
will organize general actions entitled "Can't Stand and Can't
Be Deceived anymore" intensively in the second week of April.
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