EDITORIAL: Budget debate

The first round of debate at the Lower House Budget Committee in the current regular Diet session is over.

The main issues discussed during the first two weeks of the session include the proposed integrated tax and social security reform and a revision to the ruling Democratic Party of Japan's election manifesto. But deliberations on the draft budget for next fiscal year will only start in earnest in coming days.

The focus of the debate will not be the government's spending plan itself, which is certain to be enacted because the Constitution only requires approval by the Lower House. Political attention will rather be focused on crucial budget-related bills that must pass both houses to become law.

The ruling coalition of the DPJ and the People's New Party doesn't control the Upper House, nor does it have the two-thirds majority in the Lower House required to override Upper House opposition to bills.

If the opposition parties refuse to cooperate with the ruling coalition, these bills, which are vital for implementing the budget, will fail to pass. That could cause serious economic and social confusion.

If the bill to allow the government to issue deficit-financing bonds is not enacted, for instance, the estimated revenue shortfall of 40 trillion yen will be left uncovered.

If the bill to continue the newly introduced childcare support program fails to pass, the old child allowance will be revived. But the old program would not be restored in time for the next scheduled payout in June.

If the bills on tax changes for fiscal 2011, which starts in April, die on the Diet floor, some tax cuts will expire. The tariffs on beef and some other imports will increase to their previous levels. Taxes on small and medium-sized companies and capital gains from stock investment will also go back up.

Oddly, neither the ruling nor the opposition camp is showing strong concern about the negative effects that such developments could have on people's daily lives.

The government and the ruling parties may be betting that the opposition bloc will find it politically difficult to stick to blocking the enactment of budget-related bills.

The main opposition Liberal Democratic Party appears to be bent on intensifying political pressure on Prime Minister Naoto Kan to dissolve the Lower House for a snap election by taking these bills hostage.

This is, however, not the time for such political antics. The ruling and opposition parties should immediately start to work out a political compromise. One avenue of common ground for both camps would be to adopt a totally new approach to deliberations on spending bills.

The traditional procedures, in which representatives of the parties address questions to the government in turns, should be changed. The question-and-answer formula should be replaced by discussions on specific issues, such as policy support for child rearing including child-care allowances and agricultural policy measures like direct cash payments to prop up farmers' income.

The Lower House Constitution Research Council once set up four subcommittees for free discussions on specific topics. This is a precedent worth studying.

Revisions to bills can be hammered out through discussions at subcommittees. That would be at least a more transparent process than closed-door talks to strike deals between senior party members outside the Diet.

It would also help if the budget committee discusses both the budget and related bills as a package rather than separately.

Traditionally, public hearings on key issues are held in a late stage of the Diet's budget debate as a sort of a ritual before putting the bills up for a vote. It would be better if these hearings were held at an early stage, so that opinions from the private sector can be reflected in the discussions.

The opposition has the power to block all the bills submitted by the government and therefore has to act in a more responsible manner. The challenge is how to engineer a compromise in such circumstances.

An unprecedented approach to Diet debate is needed for deliberations on budget-related bills in this unprecedented situation.

--The Asahi Shimbun, Feb. 5