The Fiscal 2018 budget is set as 97.7128 trillion Yen, which is the biggest sum as an initial estimate for consecutive six years. The figure reaches almost 100 trillion Yen, if it is combined together with the 2017 supplementary budget sums. The government’s goal lies in amending the Constitution as its tough determination; it is to escape the strained economy and to shut down criticisms against the Abe Government under which people are choked off.
FISCAL ACTION FOR CONSTITUTION AMENDMENT
Government Bonds and Consumption Tax ? Main Resources
It is the newly issued government bonds amounting 33.6992 trillion Yen that support the 2017 fiscal that exceeded by 258.1 billion Yen from the initial budget sum. In the 2017 supplementary budget additional bonds were issued which amounted 1.1848 trillion Yen. Prime Minister Abe Shinzo has no idea to recover a sound fiscal policy.
The 2018 budget appropriates revenue from the consumption tax as high as 17.5580 trillion Yen, which is an increase by 420.0 billion Yen from the initial estimate of the 2017 fiscal. The revenue from the consumption tax occupies 30% of the total income. In contrast, however, revenue from corporate taxes accounts 12.1670 trillion Yen, a decrease by 224.0 billion Yen from the previous figure. Big business makes a lot of money thanks to good economic performance for long years, while tax revenue from the economic entities remains dull. The fact comes from a tax reduction policy in favor of big business. A necessary policy is an immediate surge of the corporate tax rates to levy on their assets of internal reserves.
Two ‘Revolutions’ of Abe Government
The government claims a ‘revolution for human development’ and a ‘revolution for productivity’, which are to be reflected in the expenditure. Disappointedly, however, most part of the necessary spending relies on revenue from the consumption tax to be raised to 10% from autumn in 2019; they are expenses for construction of nursery schools set as 169.6 billion Yen and for the non-repayment fellowship program as 10.6 billion Yen.
As for ‘productivity revolution’, the budget focuses on technologies of the next generation: automatic driving systems, artificial intelligence and quantum computers. It also pays attention to subsidies for medium-and-small sized companies to develop IT. In total 228.3 billion Yen is appropriated to construct belt highways around the three big metropolitan areas in the name to ‘improve productivity’. It is another version of big public construction works.
Military Field is Sanctuary
The Abe government keeps increasing expenses for military purposes. The sum allocated for the Ministry of Defense (a military budget in a limited spectrum) is 5.1911 trillion Yen, which is a six-consecutive-year record. In the supplementary budget of the 2017 fiscal, too, additional 234.5 billion Yen of budget was compiled.
As for the controversial Aegis Ashore system, a ground-to-air interceptor missile system which is not listed in the current defense program, expenses to construct the system at two locations were appropriated as 3.53 billion Yen. The Cabinet had approved the plan and the said sum is a total of the initial and supplementary estimates.
The government is interested in acquiring long-range cruise missiles capable to attack territories of enemies. It allocated 10.1 billion Yen for ‘the technological research promotion program’ to connect academic and business entities for a military purpose, which represents a two-consecutive-year record surpassing the 10 billion Yen digit.
For the expenditure of the Japan Coast Guard, the budget is over 211.2 billion Yen, the biggest in the history. In the 2017 supplementary budget approximately 30.1 billion Yen was incorporated. The government will build a helicopter-aboard patrol ship (6500-ton) and purchase new jet aircraft. The plan is compiled in the name to ‘intensify the patrol system on the Senkaku territorial sea and improve readiness to big, simultaneous incidents’. The budget implies that the Coast Guard should be regarded as a second Self Defense Forces.
Outer space is a new military theater today. The budget set as 62.0 billion Yen is used for ten units of intelligence-purpose satellites and another 15.33 Yen, for seven units to support the quasi-zenith satellite system. These are vital infrastructure to help the Self Defense Forces and enhance the US-Japan Military Alliance.
Stand firm against Abe Government!
As for expenses for social services, decreases are eminent, which count in total as much as by 130 billion Yen, though the costs naturally grow. If the government is ready to impose heavier taxes on business and stop spending in needless public construction works and refraining from fresh military build-up, money is enough to cover social service spending. We must revive and augment the constitutional rights, resisting the Abe government, to guarantee universal social services.
January 16, 2018