Efficient Management of the Cash in the National Treasury

Press Release

August 26, 2005

Ministry of Finance

Since the cash in the national treasury is received and paid out on varying schedules, the balance of the national treasury may be short or over, depending on the time period. The Ministry of Finance has been making efforts to manage the cash in the national treasury efficiently by adjusting the balance, and the following policies will be implemented to enhance these efforts:

NOTE: When viewed as an entity with property rights, separate from the entity that performs

administrative and judicial functions, the national government is called the national treasury.

1	. Ordinary local allocation tax (granted in April, June, September, and November) shall be distributed in principle on the second business day after the end of the month (the day on which taxes and pension insurance premiums are received). This will go into effect from September 2005 allocations (allocations to be made on September 2, 2005).
2	. Government bonds for individual investors (traditionally issued on January, April, July, and October 10 as a rule) and two-year government bonds (traditionally issued on the twentieth of each month as a rule) shall be issued in principle on the fifteenth day of the month (corresponding to the day on which pensions are paid in even numbered months). This policy will be implemented beginning with individual government bonds issued in January 2006 and with two-year government bonds issued in October 2005.
3	. National government bodies will soon be requested in writing to cooperate by setting the payment date for annual expenditures for which no date of payment is stipulated by law as the second business day after the end of the month (the day on which taxes and pension insurance premiums are received in principle).

Contact and inquiries:
Treasury Division

Financial Bureau
Ministry of Finance
TEL: 03-3581-4111 (ext. 5430)
Ministry of Finance website:
http://www.mof.go.jp

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