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2007 Assessment

Japan: Integrity Indicators Scorecard

Japan: Integrity Scorecard Report > Sub-Category: Budget Processes
Indicators		Score
37	Can the legislature provide input to the national budget?	100
38	Can citizens access the national budgetary process?	75
39	In law, is there a separate legislative committee which provides oversight of public funds?	100
40	Is the legislative committee overseeing the expenditure of public funds effective?	75

Indicator and sub-Indicator Details

Can the legislature provide input to the national budget?

37a: In law, the legislature can amend the budget.

Score:

YES

Comments: For central government, the Diet Law prescribes the rules of the budget amending. For local government, Local Autonomy Law does.

References: Chapter V-II, Article 57 of Diet Law (Law No.1, 2, and 3 of 1947). [ LINK ] Article 115 of Revised Local Autonomy Law (Law No.2 of 1947). [ LINK ]

37b: In practice, significant public expenditures require legislative approval.

Score:

100

$Scoring Criteria :: 100 Score Criteria: All significant government expenditures (defined as any project costing more than 1% of the total national budget), must be approved by the legislature. This includes defense and secret programs, which may be debated in closed hearings. 50 Score Criteria: Most significant government expenditures (as defined) are approved by the legislature, but some exceptions to this rule exist. This may include defense programs, an executive\'s personal budget, or other expenses. 0 Score Criteria: The legislature does not have the power to approve or disapprove large portions of the government budget, or the legislature does not exercise this power in a meaningful way.$

Comments: Based on the laws, Japanese public expenditures require legislative approval all the time. For central government, the required number of the motion of budgetary amendment to be taken up in a plenary sitting must be supported by at least 50 members in the House of Representatives or at least 20 in the House of Councilors. For local government, any motion to modify a bill must be initiated by one-twelfth or more of the total members to be placed on the agenda of the assembly.

References: Academic, policy or professional studies. Government studies. Chapter V-II, Article 57 of Diet Law (Law No.1, 2, and 3 of 1947). [ LINK ] Article 115 of Revised Local Autonomy Law (Law No.2 of 1947). [ LINK ]

37c: In practice, the legislature has sufficient capacity to monitor the budget process and provide input or changes.

Score:

100

Comments: Usually the Ministry of Finance makes the budget bill before deliberating in the Diet.

References: Academic, policy or professional studies. Government studies. Board of Audit of Japan Home Page [ LINK ] Nakabayashi Mieko (2003). "Japan's Budget Process," Economic Currents, No.28. [ LINK ] Budget Process. [ LINK ]

Can citizens access the national budgetary process?

38a: In practice, the national budgetary process is conducted in a transparent manner in the debating stage (i.e. before final approval).

Score:

100

Comments: Government facilitates the information disclosure by the Internet. People can access the most of all official minutes of the proceedings.

References: Academic, policy or professional studies. Government studies. Nakabayashi Mieko (2003). "Japan's Budget Process," Economic Currents, No.28. [ LINK ] Budget Process. [ LINK ] E-government Japan (Japanese Only). [ LINK ]

38b: In practice, citizens provide input at budget hearings.

Score:

100

Comments: People can access the information of the itemized budget allocations, but CSOs and citizens do not play a very active role in the budget formulation process.

See also the public finance Law (Law No.34 of 1947). [ LINK ] : the council will be established by a professional group.

References: Ministry of Finance Home Page. [ LINK ] Board of Audit of Japan Home Page [ LINK ] E-government Japan (Japanese Only). [ LINK ]

38c: In practice, citizens can access itemized budget allocations.

Score:

100

Comments: People can access the information of the itemized budget allocations.

References: Academic, policy or professional studies. Government studies. Ministry of Finance Home Page. [ LINK ] Board of Audit of Japan Home Page [ LINK ] E-government Japan (Japanese Only). [ LINK ]

In law, is there a separate legislative committee which provides oversight of public funds?

39: In law, is there a separate legislative committee which provides oversight of public funds?

Score:

YES

Comments: Since Board of Audit of Japan has an independent status of Cabinet, the budget process is effectively monitored by Board of Audit of Japan.

References: Board of Audit of Japan Home Page [ LINK ]

Is the legislative committee overseeing the expenditure of public funds effective?

40a: In practice, department heads regularly submit reports to this committee.

Score:

100

Comments: In Japan, the Committee on Audit and Oversight of Administration formed by a member of the Diet has an important role in overseeing the account settlement of administration.

References: Media reports. Government studies. The Committee on Audit and Oversight of Administration. [ LINK ]

40b: In practice, the committee acts in a non-partisan manner with members of opposition parties serving on the committee in an equitable fashion.

Score:

100

$Scoring Criteria :: 100 Score Criteria: The committee is comprised of legislators from both the ruling party (or parties) and opposition parties in a roughly equitable distribution. All members of the committee -- including opposition party members -- are able to fully participate in the activities of the committee and influence the committee\'s work to roughly the same extent as any other member of the committee. 50 Score Criteria: The committee is comprised of legislators from both the ruling party (or parties) and opposition parties although the ruling party has a disproportionate share of committee seats. The chairperson of the committee may be overly influential and curb other members\' ability to shape the committee's activities. 0 Score Criteria: The committee is dominated by legislators of the ruling party and/or the committee chairperson. Opposition legislators serving on the committee have in practice no way to influence the work of the committee.$

Comments: The committee is comprised of legislators from both the ruling party and opposition parties in a roughly equitable distribution, depending on the balance of power.

References: Media reports. Government studies. The Committee on Audit and Oversight of Administration. [ LINK ]

40c: In practice, this committee is protected from political interference.

Score:

100

$Scoring Criteria :: 100 Score Criteria: This committee operates independently of the political process, without incentive or pressure to render favorable judgments on politically sensitive issues. Investigations are rarely praised or criticized by political figures. 50 Score Criteria: This committee is usually independent but is sometimes influenced by negative or positive political incentives. This may include public praise or criticism by the government. 0 Score Criteria: This committee is commonly influenced by personal or political forces or incentives. This may include conflicting family relationships, professional partnerships, or other personal loyalties that ultimately influence the committee\'s behavior and decision-making. Negative incentives may include threats, harassment or other abuses of power by the government.$

Comments: Since the committee members are formed by each political party, the decision of the committee is usually influenced by their belonged political party.

References: Media reports. Government studies. The Committee on Audit and Oversight of Administration. [ LINK ]

40d: In practice, when necessary, this committee initiates independent investigations into financial irregularities.

Score:

100

Comments: With the help of Board of Audit of Japan, the committee can enforce the oversight of these financial irregularities.

References: Media reports Government studies The Committee on Audit and Oversight of Administration. [ LINK ] Board of Audit of Japan Home Page: [ LINK ]