Japan Press Weekly

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2008 July 30 - August 19 [FINANCE]

Fukuda defies public calls and retains policy of annual 220-billion yen cut in budget growth for social services

The Fukuda Cabinet says it will continue with the policy of cutting the annual growth of expenditure on social services by 220 billion yen from the initial estimate of 870 billion yen.

The cabinet on July 29 approved the baseline for budget requests by ministries for fiscal 2009 (April 2009-March 2010).

This policy will draw criticism from the public as well as from the Medical Associations, which are infuriated by continuous cutbacks in public services that include the introduction of the new health insurance program that discriminates against the elderly aged 75 and older.

The policy of reducing the annual growth of expenditure began when the cabinet of Prime Minister Koizumi Jun’ichiro prepared the fiscal 2002 budget by slashing 300 billion yen from the annual estimated budget growth in expenditure on social services.

Since then, the government has kept slashing 220 billion yen every year, and this has affected the public through adverse revisions of health insurance, nursing-care insurance, and pension systems.

The Fukuda Cabinet is also seeking further cutbacks in the nursing-care insurance program and reductions in government funding for unemployment insurance premiums by the end of March 2010. - Akahata, July 30, 2008