MOF’s New Target

There appeared an unusual argument over military budget between the Ministry of Finance and Defense. MOF asked to abolish the appendix list of military procurement in new National Defense Program Guidelines starting next fiscal year. Although it supposedly has various reasons for MOF to get started complaining to traditional way of procurement, its main purpose would be to maintain its hegemonic power in the government. Its biggest enemy in this issue is a group of lawmakers involved in security policies in the Liberal Democratic Party.

The appendix list is made for determine how many and what kind of procurement will be needed in next decade. In former guidelines, the list included the number of divisions and battalions, or tanks and artilleries for the army. Approximate needs for submarines, fighter jets or anti-ballistic missiles are also determined in it. The new guidelines will be delivered before the end of FY2013.

MOF openly challenged this way of procurement. MOF Budget Bureau announced that the reform of procurement and personnel management was needed for MOD. Putting priority on rebuilding fiscal structure and regain international credit on Japan, MOF has been very sensitive to the swelling military budget. Military procurement is a soft target, because it has been criticized to be full of irrelevant usage of money, tainted by a number of scandals by politicians and military brokers.

Reforming the practice of MOD can demonstrate the overwhelming power of MOF in the bureaucratic community. After the defeat in World War II, Japan had been reduced the power of military in the government. Imperial Army was reformed to Self-defense Force, and civilian control over uniformed personnel was reinforced. In post-war Japan, budgetary power overtook military power in the government. The most brilliant college students were recruited to MOF. So, current tendency of expanding the role of MOD in Abe administration must be inconvenient for MOF in terms of maintaining its top status in the government.

It is unlikely for PM Abe to restrict the action of MOF, because he needs help of MOF to implement his appealing economic policy. Rebalancing the fiscal structure is the key for Japan to get rid of long time slump. But his right-wing supporters in LDP are not silent to MOF. “We should not be giving in,” said Takeshi Iwaya, the chairman of Security Research Group of LDP. They are keeping anxiety over the expansion of Chinese military power.