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Speech on Fiscal Policy by Minister of Finance Azumi at the 179th Session of the National Diet

October 28,2011 


 In order to achieve substantial reconstruction after the Great East Japan Earthquake, we have decided to submit a third supplementary budget for FY 2011 that includes necessary fiscal measures. Before I request deliberation on it, I would like to provide an outline of the draft supplementary budget.


(Introduction)

 More than seven months have passed since the Great East Japan Earthquake and the subsequent nuclear power plant accident occurred. Here anew, I would like to pray for those who lost their lives in the disaster and offer my deep condolences to their bereaved families. I would also like to extend get-well-wishes to the people affected by the disaster including those who are still in life in evacuation.

 Recovery and reconstruction after the Great East Japan Earthquake are the greatest and the highest priorities for our Cabinet. The recovery and reconstruction have made progress thanks to valuable efforts by many people including public and private sector experts and volunteers participating in the rescue and restoration operations. At the same time, it has also been suggested that recovery and reconstruction efforts have lacked speed and failed to provide help to those who need it. We must respond sincerely to such opinion and further accelerate a shift from recovery to substantial reconstruction. We must also make all-out national efforts to resolve the nuclear disaster as early as possible. Furthermore, amid the changing environment surrounding the Japanese economy, another urgent challenge is to take such measures as those against the hollowing-out of industry in response to the current appreciation of the yen.
 The Japanese economy cannot be revitalized without reconstruction in the disaster-affected regions, and without revitalization of the Japanese economy, true reconstruction in the disaster-affected regions cannot be achieved. Under such recognition, we will make all-out efforts to continuously and promptly promote recovery and reconstruction measures and put the Japanese economy on an autonomous recovery path.


(Overview of the supplementary FY 2011 budget)

 I would like to outline the third supplementary budget for FY 2011 that the government submitted to the Diet during the current session.

 First, 11,733.5 billion yen is budgeted for Great East Japan Earthquake expenses - expenses for disaster relief, disposal of disaster waste, additional public works, disaster-related public financing programs, local allocation tax grants, the Great East Japan Earthquake Reconstruction grants, reconstruction from nuclear disaster, national disaster prevention , other measures, and compensation for extraordinary financing from the pension fund.
 In order to help cover expenses related to the Great East Japan Earthquake, the supplementary budget includes 164.8 billion yen in cuts in earlier-authorized expenses, 18.7 billion yen in additional non-tax revenues and 11,550.0 billion yen in reconstruction bond issues.
 As for the reconstruction bond issues, we will submit and ask you to consider a bill on special measures concerning the securing of financial resources for reconstruction measures involving the Great East Japan Earthquake.

 We have also set aside 321.0 billion yen in the supplementary budget for expenses related to damage by Typhoon No. 12.
 In order to cover these expenses, the supplementary budget will reduce Great East Japan Earthquake restoration and reconstruction reserves by 234.3 billion yen and book 74.8 billion yen in non-tax revenues and 11.9 billion yen in carried-over surplus from the previous fiscal year.

 In addition, the supplementary budget includes 48.0 billion yen in such expenses as payments to certain persons infected with hepatitis B virus.
 In order to cover these expenses, the budget plans 20.2 billion yen in cuts in earlier-authorized expenses and 27.9 billion yen in non-tax revenues.

 As a result, the third supplementary general account budget for fiscal 2011 totals 106,398.7 billion yen in revenues or expenses, up 11,683.2 billion yen from the second supplementary general account budget.

 In relation to the supplementary budget, we will make relevant revisions to special accounts and budgets for government-affiliated organizations.

 The supplementary budget is planned to add a total of 1,342.1 billion yen to the Fiscal Investment and Loan Program to meet demand for funds required for such purposes as reconstruction after the Great East Japan Earthquake.


(Concluding remarks)

 This concludes the outline of the third 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 reconstruction of the disaster-stricken areas as quickly as possible.

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