Put an end to reckless policy of cutting social welfare budget

Akahata editorial (excerpts)

   The Abe Cabinet on August 10 approved the guidelines for the FY 2008 budget requests setting a ceiling of 47.3 trillion yen on general expenditures.

   It allocates 600 billion yen, twice that of FY 2007, for eye-catching policies such as an increase in growth potential that will meet major corporations’ demands. It is also extraordinarily generous to the budget related to the U.S. forces realignment, stating that the government will take the necessary measures for this.

   On the other hand, the cabinet decided to cut 220 billion yen in the social welfare budget which, otherwise, is expected to grow by 750 billion yen compared to FY 2007 due to aging of the population.

   In disregard of the severe verdict delivered in the recent House of Councilors election, Prime Minister Abe Shinzo is trying to stick to its “structural reform” policy.

Challenge to public judgment

   In the wake of the ruling parties’ historic defeat in the election, even Health Minister Yanagisawa Hakuo had no choice but to admit at a press conference that it is impossible to impose more burdens on hospital patients and the general public. Nevertheless, the Abe Cabinet has decided to increase the burden in the next year.

   It is merciless to cut the social welfare budget further in disregard of the deteriorating living conditions of the public, threatening the constitutional rights to decent living conditions due to the series of adverse revisions of the social welfare system.

   The budget request guidelines also put forward a drastic reform of the taxation system, including the consumption tax rate.

   Indeed, Prime Minister Abe claimed in his comments on the election results, “I don’t believe that the election result indicates public rejection of the course of the reform that I am promoting.”

   However, behind the ruling parties’ disastrous defeat lies the strong public anger over the worsening living conditions brought about under the name of “structural reform.”

   The budget request guidelines, which simply follow this “structural reform” policy line set out by the Koizumi and Abe cabinets, constitute an affront to this public judgment.

   It was a proposal made by four private sector members of the Council on Economic and Fiscal Policy, including Japan Business Federation Chairman Mitarai Fujio, that has given shape to the policies underlining the budget request guidelines. Claiming that the household budget will improve and the economy will continue to recover, they called for deep budget cuts. They proposed to carry out the drastic reform in the taxation system, including the consumption tax, and the cabinet approved their proposal as is.

Budgets defending living conditions needed

   The private sector members’ policy proposal pays no attention to people’s living conditions. They completely lack any inclination to require major corporations to bear burdens suitable for their enormous profits and even suggest further tax cuts for large corporations.

   It is clear that the economic and fiscal policy by the business circles for the business circles directly contradicts the public judgment shown in the election. It is high time for the government to put an end to the reckless policy of further cutting the social welfare budget, and draw up a budget that defends the lives and living conditions of the public.                  - Akahata, August 11, 2007