March 29, 2024
KCNA Pyongyang Times

Truth of Japan’s increasing defence spending

Date: 03/08/2017 | Source: Pyongyang Times | Read original version at source

[2017-08-02]









Japan is strictly prohibited from rearmament and remilitarization by its “pacifist constitution” and from increasing defence spending either in the budgetary expenditure or covering it through financial management and banking operation by related domestic laws.
However, Japan’s snowballing defence spending arouses serious concern among the international community.
Breaking through ceiling on defence spending
Japan built the “Self-Defence Forces” with the ground, naval and air forces in July 1954 in disregard of the constitution banning the maintenance of armed forces, including its cost in the state budget as defence cost. And it limited its ceiling to 1 percent of GNP in the “defence progrmme guidelines” in October 1976.
But the current authorities have escalated the disbursement of defence expenses in the regular budget during their tenure of office, increasing it to 5 125.1 billion yen for the 2017 fiscal year, the fifth year after they came to power.
They have cunningly expanded the military budget by using the “additional budget” in addition to the regular one.
The defence spending they additionally disbursed in this way amounted to 119.7 billion yen in 2013, 211 billion in 2014, 191.7 billion in 2015 and 170.6 billion in 2016, with a 12 percent growth rate in the past five years.
If it grows at this rate it will not only exceed the five-year budget limit of 24.7 trillion yen for the 2014-2018 mid-term defence programme but also break the one percent of GNP limit soon.
Besides, Japan creates an enormous amount of “hidden defence spending” by dispersing and hiding the expenses to be included in defence spending in other items.
After all, Japan’s “less than one percent of GNP for defence spending” has been reduced to a scrap of paper.
Excessive issue of bonds
Article 4 of the law on finance enacted in 1946 bans Japan from issuing government bonds, given that reckless financial management paved the way for the war of aggression in the past.
The sitting authorities, however, issued the largest ever amount of bonds worth 50 trillion yen for the budget for the 2013 fiscal year (including additional budget of the previous year) and over-issued deficit bonds every year by even enacting legislation on exceptional issue of public bonds against the law prohibiting the issue of government bonds in the ordinary session of the diet in 2016. As a result, the sovereign debt stemming from the bond issuing amounted to 1 071. 56 trillion yen in the 2016 fiscal year which ended last March.
The point at issue is that it is not simply due to the slackened discipline in financial management or economic policy failure.
In the mid-20th century Japan was intent on fighting aggressive wars by increasing government debts including bonds to 160 billion yen, which was more than double the total public expenditure, during the four-year Pacific war.
Therefore, the reckless financial expansion seems to be aimed at establishing a financial order and setting a precedent for the government to secure a huge amount of financial resources needed for war in case of emergency in a short time by issuing bonds.
Bank chained to power
The Bank of Japan (Central Bank) was granted “independence of finance over the state financial policy” (Article 5 of Japan’s law on banks) through the reform of monetary system after its defeat in World War II on the basis of the remorse for its service as a supplier of expenses to the war mongering government in the past.
However, Abe replaced its governor with his close associate to launch “drastic monetary easing” and forced the bank to follow the government policy to buy government bonds en masse.
As a result, the Bank of Japan began to buy in bonds in April 2013, gathering nearly half of long-term bonds worth about 600 trillion yen by the end of 2015 and about 35 percent of the total amount issued till the end of last year to become the largest bond possessor and fund supplier.
It buys over 100 trillion yen-worth securities on annual average according to the decision of the October 2014 monetary policy. In the past 2016 financial year alone it printed money worth 120 trillion yen for bonds.
It reminds people of what the bank did in the past by excessively issuing government notes worth 500 million yen between 1932 and 1936, 4.1 billion yen from 1937 to 1941 and 36.3 billion yen from 1942 to August 1945.
Japan’s growing defence spending should be a wake-up call to the international community.
 
By Han Jong Chol PT

More From Pyongyang Times

Russian President calls on all people to unite

Russian President calls on all people to unite

Russian President Vladimir Putin appealed to all the Russian people to unite in a TV video speech on March 23. Saying that the

March 28, 2024

Russian President Vladimir Putin appealed to all the Russian people to unite in a TV video speech on March 23. Saying that the

DPRK government economic delegation leaves for Russia

DPRK government economic delegation leaves for Russia

A DPRK government economic delegation led by Yun Jong Ho, minister of External Economic Relations, left Pyongyang on March 26 to

March 28, 2024

A DPRK government economic delegation led by Yun Jong Ho, minister of External Economic Relations, left Pyongyang on March 26 to

Talks held between DPRK and Vietnamese party officials

Talks held between DPRK and Vietnamese party officials

Kim Song Nam, alternate member of the Political Bureau and director of the International Department of the Central Committee of

March 28, 2024

Kim Song Nam, alternate member of the Political Bureau and director of the International Department of the Central Committee of

April spring friendship art festival to open in DPRK

April spring friendship art festival to open in DPRK

The 33rd April Spring Friendship Art Festival will be held in Pyongyang, the capital of the DPRK, on the occasion of the 112th

March 28, 2024

The 33rd April Spring Friendship Art Festival will be held in Pyongyang, the capital of the DPRK, on the occasion of the 112th

WPK delegation arrives in Hanoi

WPK delegation arrives in Hanoi

A delegation of the Workers’ Party of Korea headed by Kim Song Nam, alternate member of the Political Bureau and director of the

March 28, 2024

A delegation of the Workers’ Party of Korea headed by Kim Song Nam, alternate member of the Political Bureau and director of the

Delegation of Russian Ministry of Culture returns home

Delegation of Russian Ministry of Culture returns home

The delegation of the Ministry of Culture of the Russian Federation left Pyongyang for home on March 25 after visiting the DPRK on

March 27, 2024

The delegation of the Ministry of Culture of the Russian Federation left Pyongyang for home on March 25 after visiting the DPRK on

National security regulations adopted in Hong Kong

National security regulations adopted in Hong Kong

The legislative council of the Hong Kong Special Administrative Region of China adopted the national security regulations with

March 27, 2024

The legislative council of the Hong Kong Special Administrative Region of China adopted the national security regulations with

Water saving regulations made public in China

Water saving regulations made public in China

Some time ago the State Council of China published the water saving regulations. The regulations reviewed the rich practical

March 27, 2024

Some time ago the State Council of China published the water saving regulations. The regulations reviewed the rich practical

Unethical conduct aggravates food crisis

Unethical conduct aggravates food crisis

Food prices are soaring in the world market and many countries are now facing severe famine, which constitutes a serious problem

March 27, 2024

Food prices are soaring in the world market and many countries are now facing severe famine, which constitutes a serious problem

70th birthday of Architects Union of Korea marked

70th birthday of Architects Union of Korea marked

A meeting took place at the People's Palace of Culture in Pyongyang on March 25 to mark the 70th anniversary of the Architects

March 27, 2024

A meeting took place at the People's Palace of Culture in Pyongyang on March 25 to mark the 70th anniversary of the Architects

Educational aid exhibition held in North Hwanghae Province

Educational aid exhibition held in North Hwanghae Province

On the occasion of the school-supporting month of March, an educational aid exhibition took place in North Hwanghae Province.

March 27, 2024

On the occasion of the school-supporting month of March, an educational aid exhibition took place in North Hwanghae Province.

Women leaving traces of beautiful life

Women leaving traces of beautiful life

Working as the manager of the Sinuiju Cosmetics Factory for over 20 years, Kim Hye Yong contributed her knowledge and enthusiasm

March 27, 2024

Working as the manager of the Sinuiju Cosmetics Factory for over 20 years, Kim Hye Yong contributed her knowledge and enthusiasm

Weightlifters put on the list of top ten players

Weightlifters put on the list of top ten players

Player who hardly smiles Kim Il Gyong, who was chosen as one of the top ten players of the DPRK in 2023 again after 2022, is a

March 26, 2024

Player who hardly smiles Kim Il Gyong, who was chosen as one of the top ten players of the DPRK in 2023 again after 2022, is a

Russian State Duma condemns NATO’s air raid on Yugoslavia

Russian State Duma condemns NATO’s air raid on Yugoslavia

On March 20, the State Duma of Russia adopted an appeal of the Russian Federation Council to the UN and international parliamentar

March 26, 2024

On March 20, the State Duma of Russia adopted an appeal of the Russian Federation Council to the UN and international parliamentar

Chinese president stresses need to ensure food security

Chinese president stresses need to ensure food security

Making the rounds of Changde City of Hunan Province on March 19, Chinese President Xi Jinping emphasized the need to ensure food

March 26, 2024

Making the rounds of Changde City of Hunan Province on March 19, Chinese President Xi Jinping emphasized the need to ensure food

More Articles