Editorial
Gov't cost-cutting panel needs to design system for state budget transparency
The government cost-cutting panel's efforts to identify wasteful public projects came as a kind of shock to the public. Members of a working group under the Government Revitalization Unit scrutinized the necessity of projects planned by government ministries at a venue just like a courtroom, and identified more than 1 trillion yen, including surplus funds in a special account, as taxpayers' money that can be saved.
The group has completed the first half of the work schedule and will shortly launch the latter half.
Some have criticized the working group's decisions to abolish some projects and substantially reduce funds allocated to other projects after brief discussions as "sloppy." However, the opening of the process of drafting the state budget to the public, which could be characterized as a type of "shock therapy," has made bureaucrats aware of their responsibility for using precious taxpayers' money.
In the latter half of its work, the group should re-examine projects that have not been designated for scrutiny in a bid to eliminate the waste of taxpayers' money.
Bureaucrats at various ministries apparently did not imagine that their planned projects would come under such thorough examinations. Working group members, who have been selected from among legislators and from the private sector, voiced tough questions and bitter criticism about budgetary allocations during the session, forcing bureaucrats to review most of the projects that were subject to scrutiny.
Large numbers of viewers accessed live broadcasts of the sessions on the Internet, highlighting the public's interest in the project. There were some exchanges of emotional words, but it was epoch-making in that it made taxpayers feel more familiar with the state budget. The move should be appreciated as an effort to reform political culture.
In particular, the group's success in identifying 600 billion yen in surplus money in funds under the jurisdiction of various ministries and in a special account after only two days of examination, and demanding that the money be returned to state coffers, is a major achievement. By closely examining other funds that are not subject to scrutiny, the working group should identify further surplus money that can be returned to state coffers.
At the same time, however, some barriers to the work have surfaced. Budgetary allocations for science and technology projects should not be discussed merely from the viewpoint of cost-benefit performance. It is difficult to judge the necessity of social security and welfare programs unless working group members listen to the opinions of workers involved in such programs.
In principle, the government should respect recommendations made by the working group unless there are reasonable doubts. However, the government should also consider reviewing some recommendations by the group depending on the subject.
Prior to the panel's sessions, the Finance Ministry distributed a document titled, "Viewpoint," detailing its opinions on how to examine projects, to working group members, raising doubts that the ministry attempted to influence their opinions. It has been pointed out that the ministry played a leading role in the group's efforts to identify wasteful public projects. The process of selecting projects subject to scrutiny is unclear, and one cannot help but wonder why a fewer number of projects under the jurisdiction of the Finance Ministry were selected for scrutiny than those under the supervision of other ministries. The working group should step up efforts to identify wasteful projects in a fair manner, and even consider scrutinizing additional projects.
It remains to be seen how far the group can reduce over 95 trillion yen in budget requests for fiscal 2010. The group should not necessarily stick to 3 trillion yen -- its numerical target for reducing the waste of taxpayers' money. To what extent can the group examine projects that are not subject to scrutiny depends on the political clout of Prime Minister Yukio Hatoyama's administration.
Hatoyama has suggested that work to identify wasteful public projects will no longer be conducted from next year. However, the government should continue efforts to ensure transparency in the process of drafting a state budget. Instead of eliminating wasteful projects on an individual basis, the Government Revitalization Unit is urged to design a system to ensure transparency of the state budget as a whole.
(Mainichi Japan) November 18, 2009