FY 2007 budget gives heavy blow to the public and rewards large corporations

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

FY 2007 budget gives heavy blow to the public and rewards large corporations

The Abe Cabinet on December 24 adopted the FY 2007 draft budget that amounts to 82.9 trillion yen (up four percent from the FY 2006 initial budget).

While imposing heavier burdens on the public by eliminating the fixed-rate tax cuts in income and residential taxes and cutting back life-related expenditures, the budget draft is to reward large corporations that are making record-high profits with tax breaks and expenditures benefiting them.

The amount of social welfare expenditure will be 21.1 trillion yen (up 2.8 percent), but its natural increase will be compressed by 220 billion yen from 680 billion yen as is projected for FY 2007 by abolishing step-by-step in the next three years the additional assistance to single-parent families in the livelihood protection program and implementing a 180 billion yen cutback in government contributions to unemployment insurance funds. Employees' pension premiums and national pension premiums will continue to increase.

Funding for public works projects will remain very high at 6.9 trillion yen (down 3.5 percent). Expenditures for large-scale public works projects will considerably increase under the pretext of increasing growth potential. Construction of beltways in Tokyo, Nagoya, and Osaka will be given 186 billion yen (up 9.7 percent) and super-hub-ports project will be given 52 billion yen (up 37.5%).

The military expenditure will be 4.8 trillion yen (down 0.3 percent), but spy satellite-related spending (60 billion yen) and a part of U.S. forces realignment-related cost (31 billion yen) that is funded for the first time are separately allocated. (see separate item) The "sympathy budget" to support the stationing of U.S. forces in Japan will be 217 billion yen. The missile defense system-related spending will increase by 30.5 percent to a record-setting 183 billion yen.
- Akahata, December 21 & 25, 2006