Still Positive Budget Request

The last part of August is a season for the ministries in Kasumigaseki to wrap up their budget request for next fiscal year. While tax income has been declining due to slowdown of Japanese economy, Shinzo Abe administration is still positive in fiscal mobilization to support his political agenda called Abenomics. The total amount of the request is estimated to be ¥1.01 trillion, quite close to the highest record of ¥1.02 trillion last year.

It is assumed that Abe administration is going to request the highest amount in defense budget, which will be ¥5.168 trillion including the cost for relocation of Unites States Force in Japan. Having been intimidated by North Korea keeping on launching ballistic missiles, Ministry of Defense will request a budget for renewing surface-to-air Patriot missile to enhance ability to deal with ballistic missile. It will be four consecutive years for the administration to increase defense budget.

Regardless negative argument over Trans-Pacific Partnership in Japan or United States Presidential race, Abe administration promotes support for agriculture to survive coming great competition in Asia-Pacific region. The measures include integration of farmland for intensive agriculture, support for business deal in exporting agricultural prodects of Japan, and effort for popularizing Japanese cuisine in overseas.

While protesting consistent intrusion of Japanese territory around Senkaku Islands by China, Japanese government still expect sustainable profit in tourism from neighbor countries including China. To accept more tours, Ministry of Land, Infrastructure, Transport and Tourism will make landing fee of foreign airlines free in regional airports that are positive in accepting foreign travelers. It also is increasing travel information center or promoting reform of train stations to be barrier free. Budget for Japan Tourism Agency will be swelling up to 1.5 times greater than that of last year. Abe regards tourism as one of the important pillars of Abenomics, anyway.

Welfare policy is touchstone of Abe’s compassionate conservatism. Ministry of Health, Labor and Welfare will request ¥71 billion for increasing nursery facilities for kids and ¥57 billion for launching Unofficially Employed Workers Better Treatment Supporting Centers to achieve same-labor-same-wage standard. Development of nursing care robot and lightening burden in nursing insurance for low-income families are also included.

Economic situation in Japan is not so preferable as having a swollen national budget. Stock market has been volatile, affected by unstable move of foreign exchange. Even how Abe is devoted himself into implementing Abenomics for his longer regime, Japanese economy is heavily depending on uncontrollable international economy. Fiscal mobilization has an element of gamble in this situation.