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Japan Press: FY10 Budget Plans Swell On Child Care, Others

TOKYO (MNI) - Despite the Hatoyama administration's bid to cut low-priority or "wasteful" spending, several ministries have requested budget hikes for next fiscal year, contributing to a record total in excess of Y90 trillion, the Nikkei and other media reported Friday.

The current record is the Y89.15 trillion requested for fiscal 2004, the Yomiuri Shimbun newspaper said. The government plans to draft the fiscal 2010 budget by yearend so it can submit it to parliament for debate in a session expected to start in mid-January.

The health ministry, which is in charge of implementing the ruling Democratic Party of Japan's proposed child care allowance, has requested Y28.88 trillion for fiscal 2010, up some Y3.7 trillion, or 14.8%, from the initial budget for the current fiscal year.

Thursday marked the deadline for budget requests. Finance Minister Hirohisa Fujii had asked fellow cabinet members to keep spending, except for campaign promises, below levels in the initial fiscal 2009 budget, which totaled Y88.55 trillion.

But at least four ministries ended up asking for more money, raising concern that the administration will be forced to issue more debt to finance new spending programs amid falling tax revenues.

In its campaign that led to a landslide win in August general elections, the DPJ promised to provide Y26,000 monthly for every child through middle school and make public high school education effectively free.

Besides the child care allowance, the Health, Labor and Welfare Ministry must also deal with missing pension records and other challenges. It withheld spending figures for 11 budget items that it plans to review by year's end, leaving open the possibility of a further increase of Y1-2 trillion in its budget.

The Ministry of Agriculture, Forestry and Fisheries requested Y2.75 trillion, or 7.5% more than its share of this fiscal year's initial budget. The Ministry of Internal Affairs and Communications wants a 4.8% increase to Y18.59 trillion.

The Ministry of Land, Infrastructure, Transport and Tourism was able to shrink its budget 2.6% to Y6.19 trillion by slashing spending on public works and in other areas. The Environment, Defense, and Foreign Affairs ministries are also among those turning in smaller budget requests.

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