LDP's decision on how to distribute cash benefits is problematic
(From The Japan Times Nov. 15 issue)

問題のある定額給付金支給

After a sinuous course, the ruling Liberal Democratic Party and Komeito have reached a decision on cash benefits to be given to households as part of the government's economic stimulus package. The decision itself contains problems. It could confuse municipalities that will distribute the money. Moreover, it is unclear whether the ¥2 trillion cash giveaway from the government will actually stimulate the economy.

When Prime Minister Taro Aso announced the ¥26.9 trillion stimulus package Oct. 30, he said the government would distribute the cash benefits to all households. But people within the government and the ruling coalition argued that high-income households should be excluded.

The ruling coalition eventually decided to distribute ¥12,000 per person in principle while an extra ¥8,000 will be given for each person 65 or older or 18 or younger. But it has left to municipal governments the important decision on whether to set a limit on personal income when deciding eligibility for the cash benefits. The coalition decided that municipal governments could ask people earning ¥18 million or more after deductions to voluntarily refuse the cash benefits.

Since the ¥18 million limit is just a guideline and does not have binding power, municipal governments that distribute the benefits have to make their own decisions on the limit. There also could arise the question of impartiality if different municipalities make different decisions.

A Kyodo News poll conducted in November shows that only 16.9 percent of the polled are ready to use the cash benefits to pay for entertainment or purchase expensive items. This casts doubt over whether the measure will provide the desired boost for the economy. It would not be far-fetched to call the cash giveaway a publicity stunt in the runup to general elections.

自民党と公明党は二転三転の末、景気刺激策としての配当金支給で合意したが、支給を任された市町村の混乱や、2兆円の現金配布による景気浮揚効果への疑問といった問題が残る。

結局与党は一人あたり一律1万2千円、18歳以下と65歳以上には8千円を上乗せするとした。しかし支給にあたって所得制限を設けるのかという重要な判断は市町村に任せ、1800万円以上の高所得者には自発的辞退を促してよいとした。

1800万円の区切りは目安であって強制力はい。自治体によって制限が違う場合、公平性の問題もある。

共同通信による調査では、給付金を娯楽や高価な商品の購入にあてるという人は16.9％で、景気浮揚効果のほどは疑わしい。給付金支給は選挙目当ての宣伝行為と言ってもおかしくない。