Report No.240602

NEWS

- Domestic -

Fiscal 2007 Budget for Agriculture, Forestry and Fisheries Down 3.1% with 2,692.7 Billion Yen

The government finalized, at its extraordinary Cabinet meeting on December 24, 2006, the budget proposal for the fiscal year 2007 which fixes the total spending under the general account at 82,908.8 billion yen. Drafted based on a prospect of increased tax revenue, the fiscal 2007 budget proposal represents the first increase in two years. However, the level of spending under the general expenditure is kept restrained with the restoring of sound fiscal management borne in mind.

The budget proposed for Agriculture, Forestry and Fisheries is 2,692.7 billion, down 85.6 billion or 3.1% compared with the initial 2006 budget. It represents the third year in succession of the budget falling below the order of 3 trillion and seventh year in succession of the budget running lower than preceding year. The proposal secures budget for non-public works expenditure such as agriculture policy administration of 1,553 billion (1.0% down from the initial 2006 budget) but the budget for public works expenditure is down by 5.7% at 1,139.7 billion.

Reflecting that the coming fiscal year will be the year for thorough implementation of 'the reform of agricultural policy' and for promotion of 'the offensive agriculture policy', the proposed budget is focused on measures in these fields. Big scale new projects are incorporated including core farmer-oriented 'non-product specific farm business stabilization measures (a Japanese-style direct payment)' with allocation of 139.5 billion, 'agricultural land, water and environment measures for enhanced resource conservation' with 30.3 billion to preserve agricultural resources and 'grants to assist invigoration of rural, mountain and fishing villages' with 34.1 billion meant to redress gap between urban and rural areas.

'Measures to promote export' of agriculture, forestry and fishery products secures 2.3 billion, double that of the previous year. A new project to promote 'practical use of domestically produced bio-fuels' gets 10.9 billion.

Reorganization plan for 2007
MAFF, on December 24, 2006, also finalized a plan to reorganize itself for 2007. For promoting the non-product specific farm business stabilization measures, it plans to have 'an office for the management stabilization measures' with sixteen staff under the Management Improvement Bureau, Management Improvement Policy Planning Division. Staff numbers responsible for this project at regional agricultural administration offices and district agriculture offices will also be increased from 120 at present to 222.

For a project related to bio-mass such as bio-fuels, Minister's Secretariat, Environment Policy Division will be reorganized as 'Environment and Bio-mass Policy Division' with a net increase of two staff. For a project to promote export of agriculture, forestry and fishery products, three staff including one international negotiating officer will be added to the International Affairs Department of Minister's Secretariat, and three will be added to the staff of export quarantine under the Food Safety and Consumer Affairs Bureau. There will also be addition of five staff in the section to screen application to facilitate plant variety registration.

Besides, Vegetable Division and Fruit and Flower Division, both under the Agricultural Production Bureau will be amalgamated as a new single 'division for horticulture,' while a new 'Production Technology Division' will be set up to cover new technology as well as the promotion of local consumption of local products. Animal Quarantine Service and Plant Protection Station will each have twelve more staff to reinforce the protection regime.

The total staff number in fiscal year 2007 will be reduced by 1,243 based on business rationalization in statistics divisions of agriculture, forestry and fisheries, and food control division etc., implemented according to the staff reduction plan of the government.

[Top of Page]