The Fiscal 2013 budget is characterized by a big increase in the public construction work, which the Abe administration regards the most important to revive 'strong economy'. But money comes from a massive amount of newly issued government bonds. His policy to boost the growth is of a temporal nature and will end soon, which will induce debt crisis, rebounding onto people who will face increased taxes and deepened poverty.
PUBLIC CONTRUCTION WORK HAS HUGE MONEY, WHILE WELFARE HAS LESS
The Abe government has decided January 29 in the Cabinet meeting a draft budget for Fiscal 2013 which amounts 92 trillion 611.5 billion Yen in the general account. A proposal for the supplementary budgets (submitted to the Diet on January 31) includes an allocation for the urgent economic policy exceeding 10 trillion Yen. In total the budget goes beyond 106 trillion Yen to endorse 'lasting economic policies'.
Big Increase in Budget for Public Construction Works
The characteristic feature lies in generous spending on public construction works. The so-called 'three arrows' to enhance economy are, according to Premier Abe, bold financial deregulation, an agile financial policy and a growth strategy to induce investment of the private sector. The 2013 budget is to be composed on the basis of this direction.
The figures are: for a draft budget for Fiscal 2013 counts 5.2853 trillion Yen in the general account with a supplementary draft budget of 2.4426 trillion Yen, totaling 7.7279 trillion Yen, which is equivalent to 1.7 times bigger than that of the 2012 initial budget (4.5734 trillion Yen).
The above figures are described on the basis of categories of the Ministry of Finance. In the real term the new budget amply exceeds 10 trillion Yen, which funnels money into big construction firms.
Secondly, the budget is characterized by a military build-up policy. The defense budget counts 4.7538 trillion Yen, which is an increase by 50 billion Yen in comparison with the figure of the 2012 initial budget for the military. The increase was proposed after 11 years absence. The number of personnel for the Self Defense Forces will grow by 287 officials. The total sum will surpass the level of 5 trillion Yen, if added are the proposed supplementary budget and a spending in the special account on rehabilitation efforts from the 3/11 Earthquakes.
As for the budget for the Maritime Safety Agency, it is an increase by 2%, counting 176.5 billion Yen, and the number of personnel will grow by 400 (in real term 119 officers are added).
For development of Okinawa, a budget counts 300.1 billion Yen. The money is regarded to be 'a carrot' to construct a new base in Henoko, Nago City. Another 6.2 billion Yen is ready for deployment of troops to Yonakuni-jima and furthermore 4.5 billion Yen for installing ground-based radars on Miyako-jima.
Prime Minister Abe emphasizes on consolidating the US-Japan alliance and defending defiantly the Senkakus. That will lead to a military build-up race.
Attacks on the Socially Weak Strata
In spite of the above-said generous spending, the government will implement a money-tight policy on social welfare. Under the name of a 'proper' benefit policy, a budget for the Life Protection benefit will decrease by 67 billion Yen for living assistance allowances (gradually implemented for three years, beginning with the initial year by 15.1 billion Yen for Fiscal 2013) and by 7 billion Yen for year-end allowances.
For a health service budget, the government is to take a policy of 'appropriate medical services'. For employment, it urges individuals to be 'independent'. The measures request individual persons to tackle personally surrounding poverty.
Unprecedented Huge-Deficit-ridden Budget
The total amount of newly issued bonds exceeds 53 trillion Yen in the supplementary budget and the budget proposal for Fiscal 2013. A huge financial input works tentatively to raise the GDP, which will provide good conditions to bring in the scheduled higher consumption tax rate, 8%, in April, 2014. But the entire state budget certainly gets aggravated.
A statistical estimation tells us the balance of government bonds as of the end of 2013 to be 770 trillion Yen. Even a slight surge in the interest rate will request the government to allocate big money in 'bonds' to pay back the debts. The situation may cause debt crisis, which will be converted to burdens on the side of people: increased taxes and plagued poverty.
What is necessary is an assured policy for redistribution of profits and incomes gained by Big Business and the rich to rebuild national economy and people's life.
February 12, 2013