Shaw Capital Management Newsletter: Japan Submits Budget for 2010
The Democratic Party of Japan (DPJ) government submitted to the Diet the fiscal 2010 budget
amounting to ¥92.
3 trillion, its first budget since its inauguration in mid-September.
The...
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Shaw Capital Management Newsletter: Japan Submits Budget for 2010
The Democratic Party of Japan (DPJ) government submitted to the Diet the fiscal 2010 budget
amounting to ¥92.
3 trillion, its first budget since its inauguration in mid-September.
The budget
was even larger than its counterpart for the current fiscal year — which was already a record if
one includes the second supplementary stimulus package, approved last December.
This was
because of additional spending on child allowances, free senior high school education, cash
subsidies to farmers, and higher payments to medical institutions to alleviate the shortage of
medical doctors.
Particularly noteworthy is the large amount devoted to social security, up to
¥27.
3 trillion, which account for 51% of general public spending … the first time that the social
security share has exceeded 50%.
In marked contrast, public works investment, which has been
cut back by almost 20%, amounts to ¥5.
8 trillion, a record drop that symbolize
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