Policy Goal 1-1: Improve the efficiency and quality of public finance through prioritized allocations of budget.

Transcription

1 Goal 1-1: Improve the efficiency and quality of public finance through prioritized allocations of budget. Thinking behind the The government conducts many activities in a wide range of fields; these are funded by such means as tax receipts and bonds, with the money obtained being supplied to the fields where it is needed. Bearing in mind the nation s economic and financial circumstances, it will be necessary to bring increased efficiency and effectiveness to all financial activities based on the principle of selection and concentration, using an approach that focuses allocation of all expenditure (both the General Account and special accounts) on fields that are of great necessity and, conversely, does not allocate expenditure to fields that are of low necessity or relatively low priority. Measures for achieving the aforementioned policy 1-1-1: Initiatives aimed at achieving greater efficiency in public finance, etc. through prioritized allocations of budget 1-1-2: PR activities on public finance 1-1-1: Initiatives aimed at achieving greater efficiency in public finance, etc. through prioritized allocations of budget [Key ] B-1: Prioritized allocations when formulating the budget and implementation of initiatives toward achieving the fiscal consolidation target The MOF will bring increased efficiency and effectiveness to all financial activities, using an approach that focuses the allocation of all expenditure (both the General Account and special accounts) on fields that are of great necessity and, conversely, does not allocate expenditure to fields that are of low necessity or relatively low priority. In addition, it will carry out initiatives toward fiscal consolidation, based on the Basic on Economic and Fiscal Management and Reform 2015, to attain the fiscal consolidation target of achieving a primary surplus of both central and local governments by FY2020. Grounds for setting the This is because it is necessary to improve the efficiency and quality of public finance through prioritized allocations of budget to fields that are of great necessity.

2 1-1-1-B-2: Appropriate use and reflection of budget implementation surveys, etc. when formulating the budget B-3: Appropriate response to the Great East Japan Earthquake when formulating the budget The MOF will ensure that budget implementation surveys, policy evaluations, project reviews, final accounts and audit reports, and Diet comments and resolutions are used and reflected appropriately when formulating the budget. The MOF will work to ensure that reconstruction projects that are truly necessary for the reconstruction of disaster-afflicted areas can be steadily implemented, based on The Scale and Revenue Sources of Recovery and Reconstruction Projects During the Reconstruction Period Encompassing the Five Years from FY2016. This is aimed at strengthening the check and act functions in the budgetary Plan (budget formulation) - Do (budget implementation) - Check (evaluation and audit) - Act (reflection in the budget) cycle and feeding the findings back into the budget accurately, in order to ensure more efficient and effective use of treasury funds. This is aimed at dispelling the anxiety of people in disaster-afflicted areas concerning funding for reconstruction in the aftermath of the Great East Japan Earthquake, as well as accelerating the pace of reconstruction in those areas : PR activities on public finance [Key ] B-1: Implementation of PR activities on public finance B-2: Enabling budget request estimates,etc. to be viewed on the MOF website. The MOF will actively engage in briefings and other PR activities. The MOF will take steps to ensure that the budget request estimates and policy evaluation reports published on each ministry and agency s website can be viewed on the MOF s own website as quickly as possible. This is to ensure that the MOF fulfills its duty of accountability to the populace in relation to public finances. This is to ensure that the viewpoint of taxpayers is taken into account in budget formulation and to increase the efficiency of the budget.

3 Budget relating to this policy (Section)Expenditure for promoting the fiscal consolidation (Item)Expenditure required to improve the efficiency and quality of public finance Of which, expenditure on budget information systems Of which, expenditure on explanatory materials concerning public finance FY2014 FY2015 FY2016 2, , , , , , , , , Start of 3, , , number 0001 Excluded from (Note) Amounts shown in the table as the budget relating to this policy are the budget sums associated with Goal 1-1. Departments responsible Budget Bureau (Planning and Administration Division, Fiscal Division, Research Division, Director for Budget, Director for Fiscal Affairs, Evaluation and Expenditure Review) Planned timing of policy evaluation June 2018

4 Goal 1-2: Maintain necessary government revenue. Thinking behind the The foundation for ensuring sound finances is a philosophy that, as a general rule, aims to meet fiscal demand using tax revenue and other sources rather than depending on bonds and loans (the no-loan policy; Public Finance Act). Of these, tax revenue consists of tax receipts from domestic taxation, among other revenue. Keeping in mind annual tax system revisions and other policy s the MOF will strive to secure necessary tax revenue and make adequate estimates based on tax receipts to date and other s pertaining to the government's economic outlook. Moreover, in future, the MOF will continue to disclose information concerning such matters as its estimates of tax revenue via publications including Tax and Stamp Revenues, and will strive to improve its accountability. Next, the MOF will strive to secure other forms of income (revenue received by the government other than tax revenue and revenue from the issue of bonds), as far as possible, given the extremely harsh financial situation at present, and will endeavor to formulate appropriate estimates based on actual figures for each category in recent years. Finally, the MOF will use the issue of bonds only where unavoidable, in the event that financial resources remain insufficient even after efforts to prioritize, rationalize, and reduce expenditure. Measures for achieving the aforementioned policy 1-2-1: Maintaining necessary government revenue, etc : Maintaining necessary government revenue, etc. [Key ] B-1: Maintaining necessary government revenue and improving accountability Keeping in mind tax system revisions and other policy s, the MOF will strive to secure necessary tax revenue, and will also strive to improve its public accountability through disclosing information concerning such matters as its estimates of tax revenue via publications including Tax and Stamp Revenues and its homepage. Given the extremely harsh financial situation at present, the MOF will strive to secure the aforementioned other forms of income as far as possible, and will provide appropriate estimates based on recent actual figures. This is because, keeping in mind tax system revisions and other policy s, the MOF will disclose information concerning such matters as its estimates of tax revenue via publications including Tax and Stamp Revenues, and it will strive to improve its accountability. Furthermore, the MOF will strive to secure the aforementioned other forms of income as far as possible and provide appropriate estimates.

5 Budget relating to this policy FY2014 FY2015 FY2016 There is no budget sum associated with the aforementioned policy. Start of number Departments responsible Budget Bureau (Planning and Administration Division), Tax Bureau (Planning and Administration Division) Planned timing of policy evaluation June 2018

6 Goal 1-3: Improve transparency of budget enforcement and ensure proper budget enforcement. Thinking behind the Responsibility and authority concerning the implementation of government budgets is entrusted to the head of each ministry and agency, but as the fiscal authority, the MOF requests that each ministry and agency implements its budget economically and efficiently, in accordance with the law. Moreover, as well as striving to improve the transparency of budget implementation in order to improving the quality and efficiency of budgets, it is necessary to strengthen the C (check) and A (act) functions in the PDCA cycle. The aforementioned has been set for this purpose. Measures for achieving the aforementioned policy 1-3-1: Enhance the disclosure of information concerning budget implementation 1-3-2: Ensure smooth, efficient budget implementation 1-3-3: Implement budget implementation surveys 1-3-4: Request that each ministry and agency ensure the proper, efficient implementation of its budget 1-3-1:Enhance the disclosure of information concerning budget implementation [Key ] B-1: Status of regular checks of disclosure of information concerning budget implementation The MOF will conduct regular checks concerning the disclosure of information concerning budget implementation by each ministry and agency. This is to maintain a situation in which information about budget implementation disclosed by each ministry and agency can be viewed on the MOF website : Ensure smooth, efficient budget implementation [Key ] B-1: Ensure smooth, efficient budget implementation The MOF will utilize the carry-forward system, etc. with due consideration to matters including the compliance between the budget, and laws and regulations. This is to ensure smooth, efficient budget implementation.

7 1-3-3: Implement budget implementation surveys [Key ] B-1: Implement budget implementation surveys The MOF will steadily conduct budget implementation surveys and will promptly publish the results and details concerning their reflection in the budget. This is to ascertain the reality of budget implementation and strive for greater efficiency in the budget : Request that each ministry and agency ensure the proper, efficient implementation of its budget [Key ] B-1: Making request for ensuring the proper, efficient implementation of the budget, etc. The MOF will make written requests and hold related meetings and training sessions. It will also create and publish statistics concerning contracts (excluding small-amount negotiated contracts, etc.) concluded by each ministry and agency. This is to ensure the proper, efficient implementation of the budget by each ministry and agency, etc. Budget relating to this policy (Section) Expenditure for promoting the restoration of fiscal health (Item) Expenditure required to ensure appropriate budget implementation (Item) Expenditure required for the Accounting Center FY2014 FY2015 FY2016 Start of 5, , , , , , , , number Excluded from 0002 (Section)Expenditure arising from duties of Local Finance Bureaus (Item)Expenditure required to ensure appropriate budget implementation Excluded from Total 5, , , ,

8 (Note) Amounts shown in the table as the budget relating to this policy are the budget sums associated with Goal 1-3. Departments responsible Budget Bureau (Planning and Administration Division, Fiscal Division, Legal Division), Accounting Center (Training Department) Planned timing of policy evaluation June 2018

9 Goal 1-4: Disclose the information on the nation s fiscal conditions accurately by compiling the settlement of accounts. Thinking behind the The aforementioned has been set on the basis of the belief that the government must strive to prepare accurate, easily-comprehensible final accounts in order to deepen interest in and understanding of public finances among citizens, and endeavor to reflect such feedback as final accounts and audit reports, and Diet comments and resolutions concerning the final accounts in the formulation and implementation of the budget. Measures for achieving the aforementioned policy 1-4-1: Report on the status of budget use and treasury income and expenditure, and provide an overview of the final accounts 1-4-2: Ensure early submission of the FY2016 final accounts for revenue and expenditure 1-4-1: Report on the status of budget use and treasury income and expenditure, and provide an overview of the final accounts Quantitative measurement [Key ] A-1: Status of regular publication of the status of budget use, treasury income and expenditure, and the overview of the final accounts Tar get Fiscal year FY2013 FY2014 FY2015 FY2016 Status of budget use Status of treasury income and expenditure Overview of the final accounts 5 times 5 times 5 times 5 times 5 times 15 times 15 times 15 times 15 times 15 times 1 times 1 times 1 times 1 times 1 times Actual figure Achieved Achieved Achieved N.A. () The target has been set in order to promote timely and appropriate reporting to the populace and the Diet concerning the status of budget use, and treasury income and expenditure, which are published over the course of the fiscal year, as well as the overview of the final accounts, which discloses budget implementation performance. (Note) The actual figure for FY2016 will be confirmed in September 2017, so will be listed in the FY2018 Pre-analysis Tables. (Source) Survey by the Fiscal Division, Budget Bureau.

10 1-4-2: Ensure early submission of the FY2016 final accounts for revenue and expenditure Quantitative measurement Fiscal year FY2013 FY2014 FY2015 FY A-1: Date of submission to the Board of Audit of the final accounts for revenue and expenditure Target Actual figure Around Sep. 10, 2013 Early Sep Early Sep Early Sep Sep. 3, 2013 Sep. 2, 2014 Sep. 1, 2015 Sep. 2, 2016 Early Sep () In 2003, the House of Councillors requested that the final accounts be submitted to the Diet around November 20 in the subsequent accounting year, so, given that the Board of Audit requires around two months to audit the final accounts, the MOF has set early September as the target. (Source) Survey by the Fiscal Division, Budget Bureau. Quantitative measurement [Key ] A-2: Date of submission to the Diet of the final accounts for revenue and expenditure Fiscal year Target Actual figure FY2013 FY2014 FY2015 FY2016 Around Nov. 20, 2013 Around Nov. 20, 2014 Around Nov. 20, 2015 Around Nov. 20, 2016 Nov. 19, 2013 Nov. 18, 2014 Jan. 4, 2016 Nov. 18, 2016 Around Nov. 20, 2017 () This is because, in 2003, the House of Councillors requested that the final accounts be submitted to the Diet around November 20 in the subsequent accounting year. (Note) The reason why the FY2014 final accounts for revenue and expenditure were not submitted to the Diet until January 4, 2016 is that the Diet was not in session around November 20, (Source) Survey by the Fiscal Division, Budget Bureau. Budget relating to this policy FY2014 FY2015 FY2016 Start of number There is no budget sum associated with the aforementioned policy. Departments responsible Budget Bureau (Fiscal Division) Planned timing of policy evaluation June 2018

11 Goal 1-5: Appropriately implement tasks relating to local government revenue and expenditure, including the formulation of local government finance programs, as well as those relating to fiscal transfers between the national and local governments. Thinking behind the With regard to the state of regional finances in, although national and regional tax revenues increased, the situation remains dire because the balance carried forward from last fiscal year in the special account for the allotment of local allocation and local transfer taxes, which serves as the source of local allocation tax subsidies, declined, so the year-on-year deficit is expected to increase. It will be vital for the MOF to coordinate with the Ministry of Internal Affairs and Communications regarding tasks relating to local government finance, as the latter oversees the formulation of local government finance programs, as well as the local tax system and local government bonds. Moreover, with regard to the primary balance of the central and local governments, the MOF will ensure an appropriate response to achieving the fiscal consolidation target. The aforementioned has been set in light of this situation. Measures for achieving the aforementioned policy 1-5-1: Reform local income and expenditure 1-5-1: Reform local income and expenditure [Key ] B-1: Reforming local income and expenditure Given its position overseeing the country s finances, the MOF is moving forward with reforms to local revenues and expenditures, including a review of special expenditure allowances, in an effort to ensure the appropriate and smooth implementation of affairs pertaining to local government revenues and expenditures and fiscal transfers between the national and local governments. This is because the Basic on Economic and Fiscal Management and Reform 2015 (approved by the Cabinet on June 30, 2015) stipulates the following in regard to the local government administration and finance system: Regarding general expenditures of the central government, the government is making efforts for expenditure reform in line with the past achievements of the Abe Cabinet, without presupposing an increase except in social security expenditure due to population aging, while taking into account a decline in total population and changes in wages and prices... Local government expenditures shall be also controlled in line with the efforts by the central government. The government will proceed with a shift from emergency-response mode to normal mode, in line with the economic revitalization process. Such a shift will affect the special measures, such as extraordinary additions and special expenditure allowances, taken after the economic crisis that followed the collapse of Lehman Brothers in 2008.

12 Budget relating to this policy FY2014 FY2015 FY2016 There is no budget sum associated with the aforementioned policy. Start of number Departments responsible Budget Bureau (Director for Budget, Director for Legal Affairs, Director for Inter-Division Affairs, Director for Fiscal Affairs, Evaluation and Expenditure Review), Tax Bureau (Planning and Administration Division), Financial Bureau (Director for Fiscal Investment and Loan Appropriation) Planned timing of policy evaluation June 2018

13 Goal 1-6: Establish and properly operate fair, efficient, and transparent systems of public finance and accounting. Thinking behind the The philosophy underpinning the current system of public finance and accounting is that (1) authority for dealing with government finances must be exercised on the basis of resolutions by the Diet; (2) fiscal soundness must be ensured; and (3) expenditure by the government must be fair and proper. Also, higher transparency and improved accountability are required in the operation of systems of public finance and accounting. In, the MOF will strive to prepare and publish Japanese Government Financial Statements in order to improve the performance of accountability for the government s financial situation, etc. Measures for achieving the aforementioned policy 1-6-1: Prepare and publish Japanese Government Financial Statements 1-6-1: Prepare and publish Japanese Government Financial Statements Quantitative measurement [Key ] A-1: Publication dates of Japanese Government Financial Statements (General Account and special accounts) Fiscal year FY2013 FY2014 FY2015 FY2016 Target Late Jan 2014 Late Jan 2015 Late Jan 2016 Late Jan 2017 Late Jan 2018 Actual figure Jan 31, 2014 Jan 30, 2015 Jan 29, 2016 Jan 31, 2017 () The report entitled Further Development of the Basis for Public Sector Accounting: Interim Report (June 14, 2006, Fiscal System Council) recommends that it is necessary to consider upgrading systems to allow financial statements to be prepared and published as soon as possible, so that more effective use can be made of them, with a view to conducting more efficient, appropriate financial activities, so the date of publication has been set as the target in order to measure efforts to achieve this. (Source) Survey by the Legal Division, Budget Bureau B-1: Preparation and publication of materials concerning Japanese Government Financial Statements that are easy for citizens to understand The pamphlet Key Points in Japanese Government Financial Statements and the leaflet providing a summary of this use diagrams to explain the government s financial affairs to the public in a manner that is easier to understand. This is because reports including Toward More Effective Use of Financial Statements (April 30, 2015, Legal and Public Sector Accounting Section of the Fiscal System Council) require that easily comprehensible explanations be provided to the public.

14 Budget relating to this policy (Section) Expenditure for promoting the restoration of fiscal consolidation (Item) Expenditure required to prepare and publish financial statements FY2014 FY2015 FY Start of number Excluded from (Note ) Amounts shown in the table as the budget relating to this policy are the budget sums associated with Goal 1-6. Departments responsible Budget Bureau (Legal Division) Planned timing of policy evaluation June 2018