The government's draft budget for fiscal 2008, the first one compiled under the administration of Prime Minister Yasuo Fukuda, points to the difficulties faced during its compilation amid a slowdown in the growth of tax revenues. Furthermore, the compilation is under heavy pressure from lawmakers of the ruling Liberal Democratic Party and Komeito who want to give generous budgetary allowances to voters in anticipation of general elections next year.
But the draft budget fails to convey the message of how the government is trying to radically solve problems in such fields as social security, medical services and employment — the biggest problems faced by the current Japanese economy.
The general account in the fiscal 2008 draft budget proposed by the Finance Ministry totals ¥83.061 trillion, up 0.2 percent from the initial budget for fiscal 2007. This is an increase for the second straight year. But due to the deceleration of growth in tax revenues, the margin of the increase is much smaller than the 4 percent increase the initial fiscal 2007 general account saw. The draft budget envisages fiscal 2008 tax revenues reaching ¥53.554 trillion, only a 0.2 percent increase.