January 30, 2013

Japanese Communist Party Secretariat Head Ichida Tadayoshi on January 29 issued a statement on the FY 2013 draft budget as follows:

Following Prime Minister Abe’s policy proposal to break through the current deflation, which is composed of “three arrows” (monetary relaxation, increased government spending, and a growth strategy oriented toward large corporations), the draft budget increases large-scale public works projects such as the construction of metropolitan beltways and strategic international container facilities. It also supports big businesses through intensifying tax incentives for research and development as well as investment. On the other hand, the draft lacks measures to boost household incomes though the deflationary recession has been caused by a continuous decline in family incomes. The budget decreases the tax money allocated to local governments on the assumption of cuts in wages of local government workers, as well as social security benefits including pension and welfare benefits. In addition, the central government decided to put an end to the SME Finance Facilitation Act and set aside the plan to introduce small-sized classes into all public elementary and junior high schools. With a planned consumption tax hike, the budget would aggravate the deflation and further deteriorate the living conditions of ordinary people.

Although the government is increasing the budget for the 2011 disaster reconstruction, the amount is insufficient to rebuild sufferers’ houses and restore their businesses. Reduction and exemption on the medical treatment and nursing-care charges remain cut off. The budget can hardly be called one that will encourage and support the disaster victims.

The military budget goes up by 40 billion yen from the previous fiscal year, an increase exceeds that for social security expenses. It is absolutely unacceptable to promote overseas deployment of the Self-Defense Forces, reinforce the Japan-U.S. joint defense strategy, and give more support to the U.S. Forces.

The FY 2013 draft budget threatens peace and people’s lives through repeating the same mistakes made by successive governments in every field, such as the economy, social security, diplomacy and energy policies. The Japanese Communist Party is determined to oppose this budget and struggle with the general public to force the administration to revise it.