The Government must recognise a misjudged policy, Rengo comments on the supplementary budget
(13 February 1998)

The fiscal year 1997 supplementary budget was approved at the plenary session of the House of Councillors on 4 February 1998. On the same Rengo day made the following comment on it and requested for a budget and policy management with the highest priority given to people's lives and the economic recovery.

The supplementary budget includes not only 2 trillion-yen tax cut, but also an urgent expenditure related to the United States and the stabilisation of the financial system. Therefore, Rengo has requested to adopt a supplementary only including tax cut at the earliest stage, separating from the other expenditures. Rengo rates it high although it was adopted late and tax cut is not sufficient.

The 2 trillion-yen tax cut is not sufficient to ease such environment as the business is going backward and the fear about living is becoming bigger among the people. Rengo demands 4 trillion-yen tax cut, including permanent 3 trillion-yen cut. And the implementation of 6 trillion-yen tax cut including 4 trillion-yen income tax cut should be given the highest consideration when examining the FY 1998 budget. Rengo is continuously demanding this to be implemented.

The stabilisation of the financial system is also to be given the priority. The Diet is now in the process of discussing the bill to partly revise Deposit Insurance Law. The use of the public fund should be limited to protecting and the financial crisis should not be linked to employment problem.

The Government should recognise that the recession is caused by misjudged policies. And it should suspend/amend the Financial Structural Reform Bill and assumes the responsibility to manage the budget with the emphasis on the business stimulating counterplan and the people's living.


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