Political parties depend on corporate donations and government subsidies

All political parties except the Japanese Communist Party have continued to depend on donations from corporations and organizations as well as the government subsidies funded by people's tax money.

This is shown in the 2001 political funds report published by the Ministry of Public Management, Home Affairs, Posts and Telecommunications on September 13.

The total amount of government subsidies to political parties in 2001 was 31.393 billion yen (about 285.4 million US dollar).

Of this the Liberal Democratic Party received 14.5 billion yen, the Democratic Party of Japan 8.4 billion yen, the Komei Party 2.9 billion yen, the Liberal Party 2 billion yen, the Social Democratic Party 2.2 billion yen, and the Conservative Party 0.4 billion yen.

The JCP has refused the government subsidy on the grounds that it is unconstitutional.

The share of the government subsidy in each party's income was 76 percent for the DPJ, 62 percent for the LDP, 59.5 percent for the LP, 57 percent for the Conservative Party, and 53.5 percent for the SDP.
(For each party's income, see Table 1)

The government subsidies can be used for any purpose. The parties use the money for hotel accommodations, wining and dining at expensive restaurants, public relations, purchase of air conditioners, and paying automobile taxes.

Political organizations in medical and pharmaceutical industries gave about 2.9 billion yen as donations to the LDP and politicians including Prime Minister Koizumi Jun'ichiro.

The Japanese Medical and Dental Practitioners for Improvement of Medical Care (Hodanren) vice president said that such donations are wasteful and have negative effects, such as their use by the LDP and Prime Minister Koizumi in adversely revising the health insurance law.

From nine electric companies including the Tokyo Electric Power Co. (TEPCO), which has been accused of covering up troubles in nuclear power plants, 232 officials gave about 35 million yen in donations to the LDP's political fund organizations. (end)

Political Parties Headquarters Income Composition (%)
JCP LDP Komei DPJ SDP LP CP
membership dues 3.7 7.5 6.4 8.9 0.1
donations by individual 4.2 1.3 0.7 0.1
donations by companies & organizations 0 18 0.3 0.6 4.7
operating income 86.1 3.6 65.6 2.2 18.5 0.5 26.7
loans 0.6 9 14.9 30.5
political subsidies by govt 0 59.5 16.8 76 53.5 62 11.6
others 5.3 10.2 11.2 12.3 2.9 6.8 11.6
Total (approx. billion yen) 34.29 24.43 17.22 11.05 4.02 3.28 0.75