FY 2007 budget request retains public works projects and cuts welfare services

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FY 2007 budget request retains public works projects and cuts welfare services

According to the FY 2007 budget requests that ministries and agencies submitted to the Ministry of Finance by August 31, the general account will increase by 3 trillion 40 billion yen from the current fiscal year to 82.73 trillion yen.

The budget requests reveal that the government makes the budgets for military expenditure and large-scale public works projects untouchable while imposing heavier burdens on the public.

The Ministry of Health, Labor, and Welfare seeks to review the labor insurance system and the standards for livelihood protection in order to reduce the 770 billion yen of projected increase in welfare services needed due to the aging population to 220 billion yen.

The welfare ministry also calls for a consumption tax increase on the pretext of the need to increase state contribution to the basic pension program by FY 2009.

Among the items of large-scale public work projects, 214.2 billion yen is requested as part of the construction cost of beltways in Tokyo, Nagoya, and Osaka.

At the same time, the Financial Services Agency requests to maintain the tax breaks for capital gains.
- Akahata, September 1, 2006