Page:Economic Reform Policy by Envoy Dodge (Dodge Line).pdf/21

 7. IMMEDIATE RELEASE (of another.)

The total of the publicly reported budget is about one hundred per cent greater than the actual budget transactions. The general accounts represent only about one-sixth of the reported total budget. The tax revenues represent only about one-eight of the total reported revenues. The remainder comes from other special and general account revenues.

The Japanese press reports a total budget in excess of 4 trillion yen. This figure includes approximately 400 billion yen for local government budgets which are independent of the national budget. The 3.6 trillion yen national budget is further reduced to about 2 trillion yen by accounting transfers and necessary temporary borrowing to finance current transactions. The budget is balanced in consolidated form at an actual level of about 2 trillion yen.

In the most general terms the normal increase in expected tax revenues at the existing rates due to inflationary increases, and the limitation of expenditure expansion has been set aside to absorb heretofore concealed subsidies, to create the Counterpart Fund representing U.S. aid, to absorb the unfunded deficit and other losses in government accounts and to retire a portion of the existing government debt.

The actual total of approximately two trillion for the consolidated budget compared to any estimate of the national income shows that an appalling proportion of the total national business is represented by government transactions viz: transactions which [were] processed through government instead of private channels. Some estimates indicate this is as much as two-thirds.