Japan To Give Budgetary Priority To Hosting U.S. Forces

From mdnnews:
H/T: Terry

Japan to give budgetary priority to hosting U.S. forces




In this Wednesday Nov. 24, 2010 photo, the U.S. military aircraft carrier USS George Washington sets sail from Yokosuka naval base, south of Tokyo, heading to Korean waters to take part in a joint military exercises with South Korea in the week. (AP Photo/Sankei Shimbun, Kenji Suzuki)

TOKYO (Kyodo) -- The Japanese government on Wednesday determined that offering financial support to U.S. forces in Japan should be one of the top priorities when it compiles the state budget for the next fiscal year later this month.



It finished the process of screening 189 proposed projects to be financed by a special allotment worth around 1.3 trillion yen ($15.5 billion) under the fiscal 2011 budget, putting them into four categories from "A" with higher priority to "D," with Japan's host-nation support to the U.S. military ranked as A.



The allotment was originally set for the purpose of stimulating the country's economy through such means as improving employment conditions. Giving the A rank to projects which do not appear to have specific domestic economic benefits, also including aid for Afghan reconstruction, has sparked skepticism about the effectiveness of the screening process itself.



The process, dubbed a "policy contest," involved public hearings and was part of Prime Minister Naoto Kan's efforts to make the budget formulation more transparent.



With the process, the government has been able to "revise the budget," Koichiro Gemba, state minister in charge of national policy, told reporters after a meeting of related ministers. The upcoming budget will direct spending to where it is truly needed, he added.



As for the likelihood that Japan's support for U.S. forces will be partly covered by the special allotment, Gemba said, "We gave an A rank after concluding that the Japan-U.S. alliance must be kept stable."



Out of the 189 projects, worth around 2.92 trillion yen, 41 projects, or 355 billion yen, were given the A rank, including those for offering support to new graduates seeking jobs and helping small and medium-sized companies tap into overseas markets.



A total of 78 projects were ranked as B, 43 as C and 27 as D.



The B-ranked projects, worth 1.93 trillion yen, involved outlays for conducting a pilot program for toll-free expressways, easing funding conditions for smaller businesses and helping develop an advanced solar power system.



Kan have the final decision on which projects will be funded under the spending framework while compiling the state budget for the next fiscal year starting April 1, the total amount of which could be around 71 trillion yen.



The prime minister has said restoring Japan's fiscal health, the worst among major developed economies, is one of his top priorities.



(Mainichi Japan) December 2, 2010









http://mdn.mainichi.jp/mdnnews/national/news/20101202p2g00m0dm023000c.html