Japan Far from Reduction Target for FY '10 Budget Requests

Tokyo, Nov. 17 (Jiji Press)--Japan remains far from its target of a 3-trillion-yen cut in fiscal 2010 government agency budget requests, which have swollen to a record 95 trillion yen.

Having completed about half of its nine-day "shiwake" screening
process as of Tuesday, the Government Revitalization Unit has decided to
terminate only 160 billion yen worth of projects and measures included in
the budget requests for the year starting in April 2010.
Those set to be abolished include subsidies to hospitals
introducing equipment for online requests for medical fee payments under the
public health insurance system, the introduction of social security cards,
subsidies to Kansai International Airport Co. and the building of farm
roads.
Regarding many big items such as tax revenue grants to
municipalities and the construction of national roads, the unit called for
reviews, meaning that hard decisions on these will be made later.
The Government Revitalization Unit looked through funds managed by
government agencies and special budget accounts. At present, the unit is
requesting some one trillion yen be returned to the state coffers.
However, the amount is far from enough to bridge the financial gap
anticipated for fiscal 2010
Tax revenue for the year is expected to fall below 40 trillion yen,
while the government intends to limit new debt issue, excluding refunding
bonds, to 44 trillion yen.
Even if the budget requests are trimmed to 92 trillion yen, as
planned, a shortfall of some 8 trillion yen will remain.
The budget screening process will be resumed on Tuesday for an
additional four days.