Understanding The Japanese Budget 2004 (Contents)

PREFACE
I	BUDGET SYSTEM AND PROCESS
	1.	Fiscal Year
	2.	Types of Budgets
		(1)	General Account budget
		(2)	Special Account budgets
		(3)	Budgets of government-affiliated agencies
	3.	Composition of the Budget
		(1)	General provisions
		(2)	Revenues and expenditures budget
		(3)	Continued expenses
		(4)	Approved carried-over expenses
		(5)	Contract Authorization
	4.	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
		(5)	Policy (Subsidy) Cost Analysis
	5.	Fiscal System Council
	6.	Establishment of Council on Economic and Fiscal Policy
	7.	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
	8.	Execution of the Budget
		(1)	Execution of the Budget
		(2)	National Treasury System
		(3)	Revenue Operations
		(4)	Expenditure Operations
	9.	Provisional and Supplementary Budget
	10.	Settlement of Accounts
		(1)	Settlement of accounts
		(2)	Carried-over surpluses
		(3)	Settlement Adjustment Fund
	11.	Government Bonds
		(1)	Construction bond principle and the avoidance of issuing special deficit-financing bonds
		(2)	Prohibition of the use of central bank credit
II	HISTORY OF JAPAN'S PUBLIC FINANCE
		(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 FY2004 BUDGET
	1.	Underlying Economic Circumstance and its Countermeasures in Japan
	2.	Highlights of the FY2004 Budget
	3.	Budget for Special Accounts
	4.	The FILP Plan for FY2004
IV	BUDGET PROGRAM BY FUNCTION
	1.	Social Security
	2.	Local Government Finance
	3.	Public Works
	4.	Education and Science
	5.	National Defense
	6.	Economic Cooperation
	7.	Agriculture, Forestry and Fisheries
	8.	Energy
	9.	Small and Medium Enterprises
	10.	Reducing the Number of Civil Servants
V	Current Japanese Fiscal Condition
	1.	Current Japan's Fiscal Position
	2.	General Government Fiscal Position
	3.	National Burden Ratio
	4.	Projection of the FY2004 Budget's Effects on Outlays and Revenues through FY2007
	5.	Measures for Fiscal Consolidation

Charts
I	BUDGET SYSTEM AND PROCESS
	I-1	Relationship between the National Government and Each Budget
	I-2	The Whole Budget System
	I-3	Mechanism of FILP
	I-4	Pre-reform and Post-reform FILP Scheme
	I-5	Image of Policy cost analysis
	I-6	Establishment of Council on Economic and Fiscal Policy
	I-7	Formulation Process of the Budget for FY2004
	I-8	Guidelines for FY2004 general Expenditure Budget Requests
	I-9	Settlement Adjustment Fund
	I-10	System for Issuance and Redemption of Government Bonds
	I-11	Redemption of Government Bonds by Issuing Refunding Bonds
	I-13	Budget Process
II	HISTORY OF JAPAN'S PUBLIC FINANCE
II	II-1	Trends of Fiscal Conditions
III	OUTLINE OF THE FY2004 BUDGET
	III -1	Composition of the General Account Budget for FY2004
	III -2	Initiatives Aimed at Reducing Outlays
	III -3	Policy Packages
	III -4	Model Projects
	III -5	Budget Execution Surveys

IV	BUDGET PROGRAM BY FUNCTION
	1.	Social Security
		IV -1-(1)	Ratio of People Older than 65 Years Old within the Total Population
		IV -1-(2)	Trend of the Number of Births and the Total Fertility Rate
		IV -1-(3)	Change in the Demographic Pyramid
		IV -1-(4)	Trends of Social Security Related Expenditure
		IV -1-(5)	Trends and Projection in Social Security Expenditures
		IV -1-(6)	Outline of Public Pension
		IV -1-(7)	Economic Situation surrounding the Elderly
		IV -1-(8)	Situations surrounding the Healthcare System
		IV -1-(9)	Situations surrounding Long Term Care Insurance System
		IV -1-(10)	Situations surrounding Public Assistance
	2.	Local Government Finance
		IV -2-(1)	The System of Local Allocation Tax and Money Flow
		IV -2-(2)	Situation surrounding Subsidies for Local Governments
		IV -2-(3)	Trends in Primary Balance at the Central Government and Local Governments Levels
		IV -2-(4)	Ratios of Tax Revenues and Bonds Outstanding for the Central and Local Governments
		IV -2-(5)	Trends in Expenditures of the Central Government and Local Governments
		IV -2-(6)	Trends in Expenditures of the Central Government and Local Governments
		IV -2-(7)	Revenue Guarantee Function through the Local Allocation Tax
		IV -2-(8)	Schematic Diagram of Central and Local Revenue and Expenditure
	3.	Public Works
		IV -3-(1)	International Comparison of Gross Fixed Capital Formation as a Percentage of GDP
		IV -3-(2)	International Comparison of Infrastructure
		IV -3-(3)	Trends and Breakdown of Public Investment Related Expenditures
	4.	Education and Science
		IV -4-(1)	Sharp Decrease of Pupil Numbers and Increase of Public Share of Education Costs
		IV -4-(2)	Taxes and Education Costs
		IV -4-(3)	Comparison of Science and Technology Expenditures and General Expenditures
	5.	National Defense
		IV -5-(1)	Breakdown of the Defense Related Budget
		IV -5-(2)	BMD Build-up and Deployment Configuration
	6.	Economic Cooperation
		IV -6-(1)	ODA Extended by Leading Donors in 2002
		IV -6-(2)	Trends in ODA by G7 Member Countries
		IV -6-(3)	Breakdown of the ODA Budget
	7.	Agriculture, Forestry and Fisheries
		IV -7-(1)	Breakdown of the Budget for Agriculture, Forestry and Fisheries
	8.	Energy
		IV -8-(1)	Breakdown of the Budget for Energy
	9.	Small and Medium Enterprises
		IV -9-(1)	Breakdown of the Budget on Measures for Small-and Medium-Sized Businesses
	10.	Reducing the Number of Civil Servants
		IV -10-(1)	The Number of Civil Servants