Tricks to make military budget look smaller

Japan Press Weekly

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

Tricks to make military budget look smaller
Akahata editorial

The government has compiled a budget plan for fiscal 2009 (starting April 1, 2009) that includes 4.77 trillion yen in military expenditures. The amount is 5.5 billion yen less than in the current fiscal year budget.

While stressing a fiscal crunch facing the nation, the proposed budget slashed the military budget by just 0.1 percent from the current fiscal year budget, in disregard of the calls by the public for the government to spend more tax money on welfare services and other public needs by cutting military expenditures. The government is thus giving priority to defending the military alliance with the United States over protecting the well-being of the public.

In the budget plan, some tricks are used that help the expenditure look smaller than in the current fiscal year budget through purchasing costly equipment with small amounts of down payment. Under this method, the amounts of the procurement for the first year look small, but there is an arms buildup plan using huge amounts of tax money from the second year.

In the case of procurement of costly equipment like warships, it will take several years after orders are placed before the products are delivered. The Defense Ministry explains that the government will award multiple-year contracts for such items, and the payment for the products will be made in installments.

This means that the amount of down payment for the first year may look relatively small, but the payment will be made over several years. This method of procurement undermines the principle that the government budget must represent spending for one fiscal year.

For example, two escort ships for Japanese Self-Defense Force Aegis destroyers will cost about 145 billion yen. Payment for them for fiscal 2009 will be about 200 million yen. The remainder will be paid in later years. This is how the SDF accomplishes the procurement of the escort ships.

This multiple-year payment system makes it possible to secure a budget for Japan's participation in wars. Although the amount of payment for the first year is smaller, about 1.74 trillion yen must be paid over the several years.

The multiple-year payment system is also used to repair four CH47 transport helicopters. Its cost, 25.6 billion yen, will be paid in later years, and no tax money will be expended in FY 2009.

The purpose of the repair is to attach bulletproof sheets to the helicopters. This is without doubt in response to pressure from the United States, which wants Japan to send helicopter units to Afghanistan. Clearly, it is unconstitutional for Japan to send SDF units to Afghanistan.

There are more accounting tricks being used like making payments in multiple-year installments for the procurement of military equipment. Take a look at the budget for the U.S. military realignment in Japan. The government proposes dramatically increasing Japan's payment to 83.8 billion yen for FY 2009. This is a tiny fraction of the total amount of money, three trillion yen, which Japan is going to pay. Even if the amount of the initial payment is small, the amount will continue to increase, so will the burden on the public.

Cutbacks are the solution

The Japanese people are being negatively impacted by the deepening economic crisis as well as by the cutbacks in welfare and other social services. The need now is to implement drastic cuts in the military expenditure, which represents the largest of waste of tax revenue.

- Akahata, December 29, 2009