Early passage of supplementary budget for reconstruction needed
(From The Japan Times April 2 issue)

早期補正で復興に注力を

The record ¥92.41 trillion budget for fiscal 2011 was enacted March 29. Although the opposition-controlled Upper House voted it down earlier in the day, it was enacted due to a constitutional provision that mandates that a Lower House vote on a national budget prevails over an Upper House vote. Even with the enactment of the budget the Kan administration faces many hurdles.

Diet divisions make the passage of budget-related bills — among them a bill to issue bonds to raise some ¥40 trillion — difficult. Hoping to gain the cooperation of the opposition forces in Diet deliberations, the Kan Cabinet decided to withdraw a bill to increase the child allowance from the current monthly ¥13,000 to ¥20,000, particularly for children under 3. Instead, a stopgap bill to extend the current child allowance program for six months beyond March 31 was enacted March 31 with the help of the Japan Communist Party and the Social Democratic Party.

With the nation in the midst of a dire emergency caused by the March 11 massive earthquake and tsunami, the ruling and opposition forces must work together for smooth execution of the initial fiscal 2011 budget and for the early passage of a supplementary budget for reconstruction of the region devastated by the disasters.

Prime Minister Naoto Kan hopes to craft an initial extra budget of more than ¥2 trillion to pay for reconstruction. The initial fiscal 2011 budget includes a contingency fund of ¥1.16 trillion. Since this fund is not enough to cover the planned extra budget, the government will need to raise funds by reducing spending on the DPJ's key policies. The government and the DPJ should demonstrate sincerity in its talks with the opposition forces on this point. By doing so they may get the opposition's cooperation in passing the budget-related bills.

The government will need additional supplementary budgets for reconstruction. It should not rule out an issuance of bonds for raising funds because tax increases are likely to depress the economy and further diminish tax revenues.

一般会計総額92兆4100億円で過去最大の2011年度予算が成立した。だが、40兆円の財源を確保する公債発行を含む関連法案をねじれ国会で成立させるのは難しい。野党の協力を得るため、3歳未満のみを月2万円とする子ども手当法案は撤回され、現行制度を半年間延長するつなぎ法案が共産、社民両党の協力で成立した。

東日本大震災による非常事態のなか、与野党は今年度の予算の円滑な執行と、被災地復興のための補正予算の早期可決を目指すべきだ。菅首相は2兆円規模の第一次補正予算案を編成する考えだ。11年度予算の予備費1兆1600億円だけでは足りないため、政府は民主党の主要政策を見直し財源を確保する必要がある。

復興には追加的な補正予算が必要となるだろう。増税は景気悪化と税収減を招く可能性が高いため、復興国債発行を視野に入れるべきだ。