JCP demands budget be redrafted to reduce people's hardships

The Japanese communist Party criticized the Koizumi Cabinet's budget for the next fiscal year as a way to ruin the Japanese economy.

The draft budget for fiscal 2003 starting in April next year was published on December 20 and approved on December 24 by the cabinet after adjustments made through negotiations between the Finance Ministry (which drafted the budget) and other ministries and agencies.

The 81.8 trillion-yen budget for FY 2003 is up 0.7 percent over the previous year's initial draft budget. By increasing the government bond issuance by 0.8 percent to 16.8 trillion yen, Japan's fiscal dependence on bond issuance will be 44.6 percent, the highest ever, or a 5.37 million yen debt for each Japanese.

In a published statement on the same day, Fudesaka Hideyo, JCP Policy Commission chair, made the following points:

- Although tax revenue is expected to decrease by 5 trillion yen, the national budget's dependency on government bonds will be the worst ever. This suggests that the national finance will be worse than ever.

- The new budget is aimed at holding down expenditure through cuts in funding for improvement of people's living conditions. This means that Koizumi's 'fiscal reform' will accelerate the vicious circle of economic downturn and financial failure.

- It shows the complete failure of "Koizumi-style structural reform."

- It cuts the government funding for elementary and junior high schools and shifts the burden onto local governments.

- By contrast, the funding level for military expenditure will remain unchanged.

- The allocation for public works projects will be cut by only 3.7 percent, reflecting the cost reduced by deflation.

- The government advocates that it will carry out a 2 trillion yen tax cut as part of anti-deflation measures that will only benefit major corporations and the rich.

- The JCP demands that the budget be redrafted to redirect expenditures to reduce hardships the people are experiencing in the midst of the economic recession, improve social services and employment, and help smaller companies. (end)