- The 1999 national budget was vetoed by the House of Councilors, but that veto was overridden by the House of Representatives and the budget approved.
Rengo is extremely disappointed with the budget as it was passed.
We demand budgetary measures that will help economic recovery, specifically income tax reductions to stimulate consumer spending and measures to create new jobs to ease anxieties over unemployment. We would also like to have seen reforms of the pension and public health budgets.
These ideas were backed by the opposition party, which holds an upper house majority. However, the lower house action override that majority, and this inappropriate budget was approved.
- The Democratic Party, currently a minority, has articulated the deficiencies of this budget.
A tax increase on the middle and lower class income earners, defined as those earning less than 7,930,000 yen annually, will not necessarily stimulate employment. It will not secure stability or help with economic recovery, and instead repeats previous patterns of scattering public investments. It does not address the pressing problems in public health care or pensions.
Rengo has demanded the government take an active role discussing potential job creations of each ministry's new budget.
However the government responded only with the suggestion of a target number in four fields. Its attitude toward the goal of creating one million new jobs was lukewarm.
- The Japanese economy is in serious deflation, with about 2 percent negative growth, a decrease in income, and 4 percent unemployment. Many people face serious crises and are anxious over their livelihood and future prospects.
The government must take urgent steps to break out of this deflation return the country to economic stability.
- Rengo will continue to demand the government pursue measures to solve the economic crisis. We will continue to collaborate with the Democratic Party.
In particular, Rengo will demand the government revise the budget to stimulate growth in welfare, education, environment and urban development to accommodate the million unemployed
It is also necessary to ease anxieties over the future. Rengo also insists the government address the Treasury's pension delivery system, and health care system reforms.
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