Full-fledged deliberations on the fiscal 2019 budget have begun in the House of Councillors Budget Committee. The ruling and opposition parties should delve into the tasks of the national administration broadly, including economic vitalization and foreign affairs.
But what the opposition parties focused on again is the issue of poor handling of monthly labor statistics. They regarded as problematic an additional report compiled by the Health, Labor and Welfare Ministry's special inspection committee, saying it has no neutrality. They have also intensified their criticism about the conclusion of the report, which did not recognize any organizational cover-up.
While saying that inadequate surveys of labor statistics "can be seen as a cover-up in a general sense of the term," Prime Minister Shinzo Abe explained that the irregular handling "has been found to involve no cover-up from a legal point of view."
The root cause of such mismanagement persisting for many years lies with the deterioration of the bureaucratic organization. Dwelling too much on the definition of a cover-up could lead to losing sight of the true nature of the problem. What counts most is clarifying the actual state of affairs pertaining to the inadequate handling of statistics and carrying out drastic reforms of relevant organizations.
Labor minister Takumi Nemoto said the ministry will take such measures as giving practical training on statistics to all the staff at the ministry and the utilization of private-sector experts for statistical matters. The ruling and opposition parties need to discuss the adequacy of such measures.
The important point at issue during the budget deliberation is how to deal with the hike in the consumption tax rate, scheduled to be implemented in October.
Stay the course
In the light of U.S.-China trade friction and China's economic slowdown, voices worrying about Japan's economic outlook have begun to be heard.
The opposition parties have asked the Abe administration about the possibility of postponing the planned tax rate hike for the third time. Abe emphasized once again that the government will raise the tax rate unless the economy is hit by a shock on the scale of the collapse of Lehman Brothers.
The consumption tax is the key tax supporting the ever-increasing burden of social security costs. Unless the country plunges into an economic crisis, the tax rate must be raised steadily.
The important thing is how to develop an environment for the consumption tax rate hike to be implemented smoothly.
Incorporated in the fiscal 2019 budget is 2 trillion yen worth economic measures. The measures include diverse programs to ease financial burdens on households, including a point-reward program for purchases made with cashless payment methods, benefit payments to encourage home purchases, and premium shopping vouchers.
It is essential to closely examine the significance and effect of these measures.
Taking into account the second U.S.-North Korea summit, which failed to reach an agreement, discussion on Japan's diplomacy toward North Korea should also be deepened.
In his talks with Kim Jong Un, chairman of the Workers' Party of Korea, U.S. President Donald Trump raised the issue of the Japanese nationals abducted by North Korea.
Abe emphasizes his will to resolve the issue through face-to-face talks with Kim. How can Japan elicit a positive response from North Korea? It is necessary to work out a strategy, while cooperating closely with the United States. The ruling and opposition parties should discuss these issues from a broader perspective.
Although the passage of the fiscal 2019 budget through the Diet within the current fiscal year is considered to be certain, the upper house deliberation must not be treated as a dead rubber match. The upper house will be required to hold a battle of words from its professional viewpoint as a representative body for reconsideration.
(From The Yomiuri Shimbun, March 7, 2019)
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