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Japan Press Service Co., Ltd. is the only news agency providing information of progressive, democratic movements in Japan

Koizumi Cabinet decides to impose more burdens on people for next 10 years

The Koizumi Cabinet on July 7 adopted the "Basic Policies for Economic and Fiscal Management and Structural Reform 2006" that plans to reduce up to 14.3 trillion yen in expenditures (mainly on welfare) and increase up to 5.1 trillion yen in taxes, including the consumption tax by the FY 2011.

In order to make up for an estimated shortfall of 16.5 trillion yen by FY 2011, the government will reduce expenditures by 11.4-14.3 trillion yen, including 1.6 trillion yen in social security, 3.9-5.6 trillion yen in public works projects, and 2.6 trillion yen in the labor cost of public employees. It also plans to increase tax revenues by 2.2- 5.1 trillion yen.

Aiming at a stable debt reduction in terms of debt/GDP ratio in the next decade, the government will impose further burdens on the public.

On the same day, Japanese Communist Party Secretariat Head Ichida Tadayoshi published a statement on these basic policies, criticizing them for adversely affecting the public with heavier burdens and cutbacks in services as well as for imposing a major increase in the consumption tax.

Ichida said that more cutbacks in social security will be added to the already scheduled mal-revisions of pension, nursing-care, and medical services while cutbacks in public works projects will remain only partial.

Ichida criticized the government for making military spending "untouchable" in order to secure the cost for the U.S. military realignment that amounts to three trillion yen.

"It is serious that the basic policies openly press ahead with an increase in the consumption tax by stating that the government will drastically reform the tax system, including the consumption tax, as early as the FY2007," Ichida stated.

He warned that the basic policies will only discourage consumers from spending and hamper stable economic growth, thus provoking a more serious financial crisis.

Ichida added, "The JCP opposes policies that sacrifice the public, and calls for an economic and fiscal policy to be created for the benefit of the public."
- Akahata, July 8, 2006