Democratic Party of Japan Secretary General Ichiro Ozawa has submitted a list of budgetary demands for fiscal 2010 to the administration. Unfortunately the process of compiling the demands lacks transparency. As Prime Minister Yukio Hatoyama moves toward a final decision about the budget, his political leadership will be tested because he has to prioritize projects amid a severe shortage of funds.
If he tries to keep all the main promises contained in the DPJ's election manifesto, it will lead to a bloated national debt. Given the harsh financial conditions, he will need courage to drop, revise or postpone some election promises.
Representing the DPJ, Mr. Ozawa proposed retaining surcharges on road-related taxes, which bring in some ¥2.5 trillion annually in tax revenues to the central and local governments. The DPJ's election manifesto had called for abolition of the surcharge to reduce the burden on drivers.