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Speech on Fiscal Policy by Minister of Finance Noda at the 177th Session of the National Diet

July 15, 2011

In order to ensure the implementation of immediate restoration measures to deal with the damage inflicted by the Great East Japan Earthquake, we have decided to submit a second draft supplementary budget for FY 2011 that covers necessary fiscal measures.

Before I request deliberation on it, I would like to provide an outline of the draft supplementary budget.

(Introduction)

It is four months now since the Great East Japan Earthquake that caused enormous damage. We will continue to make every effort to ensure early restoration of the disaster-stricken areas by quickly and steadily implementing projects included in the first supplementary budget for FY 2011, which was unanimously approved. As many of the people affected by the disaster are still living in severe conditions, we will provide strong support for the rebuilding of their lives as an immediate task. Moreover, we have recently established the Reconstruction Headquarters in response to the Great East Japan Earthquake and have been considering specifics of measures for full-fledged post-earthquake reconstruction based on recommendations presented by the Reconstruction Design Council. The government will continue efforts to ensure seamless and quick transition from restoration to reconstruction.

Meanwhile, the nuclear disaster is still continuing, with a large number of people still being evacuated from their homes. The government will do all it can to bring the disaster to an end as soon as possible.

(Outline of the draft supplementary budget for FY 2011 [Article 2 of the General Account and Article 2 of the Special Account])

I will outline the second draft supplementary budget for FY 2011 that we have submitted.

Firstly, in terms of expenditures, the total expenditure will be 1,998.8 billion yen. Of the amount, expenditures related to the Act on Compensation for Nuclear Damage, etc. account for 275.4 billion yen, expenditures related to support for the people affected by the disaster account for 377.4 billion yen, expenditures for the operation of the Reconstruction Headquarters in response to the Great East Japan Earthquake account for 0.5 billion yen, the contingency reserve for restoration and reconstruction from the Great East Japan Earthquake accounts for 800 billion yen, and local allocation tax grants account for 545.5 billion yen, respectively.

In terms of revenues, meanwhile, we will not issue additional government bonds and will utilize a budget surplus of 1,998.8 billion yen carried over from the previous fiscal year.

As a result, the total amount of the general account budget for FY2011 adjusted by the second supplementary budget will be 94,715.5 billion yen, an increase of 1,998.8 billion yen over the current budget that includes the adjustment by the first supplementary budget, in both revenues and expenditures.

In relation to the supplementary steps for the general account, we will also take necessary supplementary steps for the special account budgets.

(Conclusion)

This concludes the outline of the second draft supplementary budget for FY 2011.

I hereby request that the Diet deliberate on this supplementary budget along with related bills and promptly give its approval, to achieve the restoration of the disaster-stricken areas as early as possible.

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