| UNDERSTANDING THE JAPANESE BUDGET |
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BUDGET BUREAU |
CONTENTS
| PREFACE | |||
I |
BUDGET SYSTEM AND PROCESS |
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| 1. | Overview | ||
| 2. | Fiscal Year | ||
| 3. | Types of Budgets | ||
| (1) | General Account budget | ||
| (2) | Special Account budgets | ||
| (3) | Budgets of government-affiliated agencies | ||
| 4. | Composition of the Budget | ||
| (1) | General provisions | ||
| (2) | Revenues and expenditures budget | ||
| (3) | Continued expenses | ||
| (4) | Approved carried-over expenses | ||
| (5) | Contract authorization | ||
| 5. | Fiscal Investment and Loan Program (FILP) | ||
| (1) | Introduction | ||
| (2) | Outline of the FILP | ||
| (3) | Procedure of Planning FILP and Discussions in the Diet | ||
| (4) | Fundamental Reform of FILP | ||
| 6. | Fiscal System Council | ||
| 7. | Establishment of the Council on Economic and Fiscal Policy | ||
| 8. | Budget Process | ||
| (1) | Guidelines for budget requests and submission of requests | ||
| (2) | Budget examination by the Budget Bureau of the MOF and approval of the Draft Budget by the Cabinet | ||
| (3) | Parliamentary budget deliberation | ||
| 9. | Execution of the Budget | ||
| (1) | Execution of the Budget | ||
| (2) | National Treasury System | ||
| 10. | Provisional and Supplementary Budgets | ||
| 11. | Settlement of Accounts | ||
| (1) | Settlement of accounts | ||
| (2) | Carried-over surpluses | ||
| (3) | Settlement Adjustment Fund | ||
| 12. | Government Bonds | ||
| (1) | Construction bond principle and the avoidance of issuing special deficit-financing bonds | ||
| (2) | Prohibition of the use of central bank credit | ||
| [Reference] The Public Finance Law [Law No. 34 of 1947] | |||
| [Reference] Redemption of government bonds | |||
II |
HISTORY OF PUBLIC FINANCE AND THE CURRENT FISCAL SITUATION |
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| (1) | Situation until FY1974 - from a balanced budget to the issuance of government bonds - | ||
| (2) | Expansion of fiscal deficit in the late 1970s | ||
| (3) | Efforts toward fiscal consolidation since the 1980s | ||
| (4) | Economic stimulus measures in the 1990s | ||
| (5) | Enactment and Suspension of the "Fiscal Structural Reform Act" | ||
| (6) | Efforts towards economic recovery | ||
| (7) | The Koizumi administration's efforts towards fiscal consolidation | ||
III |
OUTLINE OF THE FY2003 BUDGET |
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| 1. | Underlying Economic Circumstances and Their Countermeasures in Japan | ||
| 2. | Highlights of the FY2003 Budget | ||
| 3. | Overall Picture of the FY2003 Budget | ||
| 4. | Budget for Special Accounts | ||
| 5. | The FILP Plan for FY2003 | ||
IV |
BUDGET PROGRAM BY FUNCTION |
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| 1. | Social Security | ||
| (1) | Outline of the social security system in Japan | ||
| (2) | The aging of the population and the increase in social security-related expenditures | ||
| (3) | Future projections of costs and benefits concerning social security | ||
| (4) | Efforts to reform the social security system | ||
| (5) | Overview of the Social Security Related Expenditure for FY2003 (general account) | ||
| 2. | Public Works | ||
| (1) | Public investment | ||
| (2) | Structural Reform and Medium-Term Economic and Fiscal Perspectives (approved by the Cabinet on January 25th, 2002) | ||
| (3) | Public works expenditures | ||
| [Reference] Types of public works | |||
| (4) | Highlights of Public Investment related FY2002 budgets | ||
| 3. | Education and Science | ||
| (1) | Introduction | ||
| (2) | FY2003 budget | ||
| 4. | Agriculture, Forestry and Fisheries | ||
| (1) | Outline | ||
| (2) | Food Stable Supply | ||
| (3) | Forestry and fisheries assistance | ||
| 5. | Small and Medium-Sized Businesses | ||
| 6. | Economic Cooperation | ||
| (1) | The significance of economic cooperation | ||
| (2) | ODA | ||
| (3) | Japan's ODA (FY1994-FY2002) | ||
| (4) | FY2002 budget measures | ||
| 7. | National Defense | ||
| (1) | Japan's Self-Defence Capacity | ||
| (2) | Japan's Defense Build-Up | ||
| (3) | Outline of FY2003 Defence Budget | ||
| 8. | Energy | ||
| 9. | Local Government Finance | ||
| (1) | Fiscal Relationship between the Central and Local Governments | ||
| (2) | Local Public Finance Program (LPEP) | ||
| 10. | National Debt Service | ||
| 11. | Reducing the Number of Civil Servants | ||
V |
CURRENT JAPANESE FISCAL CONDITION |
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| 1. | Current Japan's Fiscal Condition | ||
| 2. | General Government Fiscal Position | ||
| (1) | General government financial balance | ||
| (2) | General government gross debt | ||
| [Reference] Problems associated in using figures based on "general government basis" | |||
| 3. | National Burden Ratio | ||
| 4. | Projection of the FY2003 Budget's Effects on Outlays and Revenues through FY2006 | ||
| 5. | Measures for Fiscal Consolidation | ||
| [Reference] Primary Balance | |||
APPENDIXES |
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| Appendix | A. | Basic Policies for Economic and Fiscal Policy Management and Structural Reform 2002 | |
| Appendix | B. | Guidelines for Formulation of the FY2003 Budget | |
| Appendix | C. | Program to Accelerate Reforms | |
| Appendix | D. | Outline of the Supplementary budget for Fiscal Year 2002 | |
| Appendix | E. | Reform and Perspectives - FY2002 Revision | |
CHARTS & TABLES |
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BIBLIOGRAPHY |
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