Japan Press Weekly

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2013 January 16 - 22 [ECONOMY]

Gov’t to use extra budget for unnecessary large public works projects

A 13.1 trillion yen supplementary budget draft for FY2012 approved by the Abe Cabinet on January 15 is full of unnecessary large public works projects under the guise of encouraging the growth of large corporations.

The extra budget includes 10.3 trillion yen in spending for the economic stimulus package, which was decided by the Cabinet on January 11, and 2.6 trillion yen in the government share of the burden for the basic pension. In order to secure funds for the budget, the government will issue an additional 5.2 trillion yen in national bonds. The total issuance of national bonds in the current fiscal year will reach 50 trillion yen.

In the additional budgetary plan, for the purpose of supporting big businesses, the government will use 205.3 billion yen to promote basic infrastructure development under the name of strengthening corporations’ competitiveness; 120 billion yen to create centers of corporate R&D activities; and 139 billion yen to assist corporations to move their businesses abroad.

The government plans to submit the budget draft to the next ordinary Diet session to be convened on January 28 and hopes to gain Diet approval on February 15.