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Asahi on this year's budget

04 Jan 2010
Posted by matt

What did the Asahi have to say about this years fiscal budget? Let's take a look:

In a radical departure from the traditional budget process led by bureaucrats, the spending plan for fiscal 2010 was drawn up on the basis of political leadership, with ministers and senior vice ministers playing the central role.

Hm. Okay. If you say so.

A government task force set up to eliminate wasteful expenditures scoured budget requests from ministries and agencies for savings, thereby reducing public works outlays by nearly 20 percent from the previous year.

This sounds impressive, but just how much money exactly was saved? In the US there was a lot of brouhaha over the issue of politicians earmarking funds for various pork projects. However, while this is a problem, the amount of money spent this way is insignificant compared to mandatory spending (on social services) and national defense. So I wonder if it's not the same in Japan. How much money is really being saved here? Something to look into. After this, the Asahi editorial just sort of goes all over the place, here are the main points they seem to be making:

  1. Hatoyama made a lot of promises and tried to live up to them, but Ozawa -- concerned about fiscal discipline -- stopped him.
  2. The new child care program is good as it will probably encourage people to have more children.
  3. Hatoyama was right not to reduce the gasoline tax as we need a greener planet.
  4. Hatoyama's budget is underfunded and relying on unsustainable funding methods.
  5. Hatoyama should create a budget foundation that will last 50 or 100 years.
  6. The child allowance will be expensive into the future, so sales tax should be raised right away.
  7. Environmental taxes are a good idea and should be implemented as soon as possible.
  8. Hatoyama should restore vitality to the nation's public finances.

My response to these would be:

  1. I don't care. Never trust a politician. Always seek to limit their power.
  2. The child care program is bogus, unjust, and expensive.
  3. The gasoline tax is unjust. It was supposed to be temporary many many year ago. It indirectly subsidizes trains and buses corporations, who no doubt lobby for it. Internationally oppose US engagement in the Middle East.
  4. Yes, that's right. It's a disaster for the future.
  5. That's just silly.
  6. The government gets too much money already, don't raise sales tax, cut spending. Moreover, who would raise sales tax during bad economic times? Still though, there are worse things than encouraging savings via a sales tax.
  7. Global warming is probably exaggerted, but even if it's on the way, it won't happen overnight. The free market will respond better to it than the government can. Also, it's unlikely the government of Japan can stop global warming, if it is a reality, by making a few feel good taxes (in favor of the corporations and organizations that lobby best).
  8. He should reduce spending where ever and how ever he can. But instead, he is increasing the total amount of spending.

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