Last updated at: (Beijing Time) Wednesday, December 24, 2003
Japan cuts FY 2004 defense budget by record 1%
Japan's defense budget will be cut by a record 1 percent in fiscal 2004 from the previous year, with new outlays for missile defense and troop deployment to Iraq more than offset by cuts in personnel and mainstay equipment costs.
Japan's defense budget will be cut by a record 1 percent in fiscal 2004 from the previous year, with new outlays for missile defense and troop deployment to Iraq more than offset by cuts in personnel and mainstay equipment costs.
According to a government report released Wednesday, the budget for the fiscal year to start April 1 came to 4,903.0 billion yen (45.8 billion US dollars), down 50 billion yen (460 million US dollars) for the second consecutive year of decline. The previous record cut was in fiscal 1998 at 0.2 percent.
The government earmarked 13.5 billion yen (126 million US dollars) for the dispatch of Self-Defense Forces (SDF) personnel to help rebuild Iraq and 14.5 billion yen (133 million US dollars)to build a ballistic missile defense shield using US systems.
The planned contract value for missile defense will be slashed from 142.3 billion yen (1.3 billion US dollars) in the Defense Agency's initial request in August due to the effects of a stronger yen, price negotiations and a smaller number of missiles to be purchased, the report said.
Personnel and ration costs will fall by 53.4 billion yen (507 million US dollars) to 2,165.4 billion yen (20 billion US dollars)due to a planned reduction of the Ground Self-Defense Force (GSDF) by 2,093.
The approved Iraq reconstruction spending includes daily allowances of up to 24,000 yen (224 US dollars) per SDF member and communications costs including rental fees for a communications satellite, the report said.
The government plans to deploy up to 600 GSDF members as well as Air Self-Defense Force aircraft and Maritime Self-Defense Forceships to Iraq until next December.