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NSF/Tokyo Report: Proposed Supplemental Budget Increases FY 1998, S&T Funding Level by 20.3% June 12, 1998

The National Science Foundation's offices in Tokyo and in Paris periodically report on developments abroad that are related to the Foundation's mission. These documents present facts for the use of NSF program managers and policy makers; they are not statements of NSF policy. Report Memorandum #98-11 The "Proposed" Supplemental Budget Increases FY 1998 S&T Funding Level by 20.3% As part of the comprehensive economic stimulus package, on May 11, 1998 the government submitted to the National Diet a supplemental budget proposal for the current fiscal year (FY 1998) amounting to 5.1 trillion yen (about $38 billion at 135 yen per dollar) to be added to the initial FY'98 general account budget of 77.7 trillion yen. According to an estimate by the Science and Technology Agency (STA), the proposed supplemental budget includes 618.8 billion yen (about $4.6 billion) for S&T-related expenditures; an amount equivalent to 20.3% of the initial FY 1998 S&T-related budget of 3,031.9 billion yen. If approved, the combined total of 3,648.7 billion yen for this year's S&T-related budget represents 21.5% increase over the last year's total of 3,002.6 billion yen; a sharp contrast to a very small increase rate (0.9%) previously suggested when no supplementary budget was considered possible in view of the huge financial deficit of the national treasury. (Ref. NSF/Tokyo Report Memorandum #98-02 of 1/22/98.) The fairly large (21.5%) increase proposed for S&T budget at this time can be a positive step forward in achieving the goal of doubling the government S&T expenditure by year 2000 from the FY'92 level. The table below compares the S&T-related budgets, including supplemental budgets for the past several years. Table 1: Summary of S&T-related Government Budgets Including Supplementary Budgets (Unit: In billion yen) Fiscal years June 8, 1998

Initial budgets Supplementary budgets Total S&T budgets Yearly change FY'92 2,134.7 103.7 2,238.4 +10.7%

FY'93 2,266.3 549.0 2,815.3 +25.8% FY'94 2,358.5 9.7 2,368.2 -15.9% FY'95 2,499.6 685.4 3,185.0 +34.5% FY'96 2,810.5 155.5 2,966.0 -6.9% FY'97 3,002.6 0 3,002.6 +1.2% FY'98 3,031.9 616.8 3,648.7 +21.5% The table 2 below shows the "proposed" FY 1998 supplemental budgets along with the "initial" S&T-related budgets approved for each government ministry or agency. Table 2: Inter-Agency Comparison of FY 1998 S&T Budget Amounts (In Billion Yen) S&T-related budget FY 1997 (Total) FY'98 Initial FY'98 Suppl. FY'98 Total Ministries and Agencies

Ministry of Education, Science, Sports & Culture (Monbusho) 1,289.0 1,311.1

188.7 1,499.8 Science and Technology Agency 734.5 740.1 111.8 851.9 Min. Int'l Trade & Industry 472.2 492.8 180.4 673.2 Defense Agency 175.3 144.2 144.2 Min. Agriculture, Forestry & Fish. 100.9 104.2 12.7 116.9 Ministry of Health and Welfare 91.5 95.1 3.5 98.6 Ministry of Posts & Telecomm. 57.7 60.5 102.5 163.0 Ministry of Construction 38.9 39.5 3.8 43.3 Ministry of Transport 23.1 23.1 1.6 24.7 Environment Agency 18.0 19.6 7.7 27.3 Ministry of Foreign Affairs 13.0 12.4 12.4 Ministry of Labor 4.3 3.9 -

3.9 Ministry of Finance 2.2 2.4 2.4 Ministry of Justice 2.0 2.1 2.1 National Police Agency 1.5 2.1 0.3 2.4 Science Council of Japan 1.3 1.3 1.3 Economic Planning Agency 1.1 1.0 1.0 Ministry of Home Affairs 0.8 0.9 1.5 2.4 National Land Agency 0.5 0.7 2.5 3.2 National Diet 0.6 0.6 0.6 Hokkaido Development Agency 0.2 0.2 0.2 TOTAL** 3,002.6 3,031.9 616.8 3,648.7 ** Note: The sum of the individual budget figures slightly exceeds the total because funds for the Japan Key Technology Center are double-listed in the budgets for the Ministry of International Trade and Industry and the Ministry of Posts and Telecommunications. NSF/Tokyo: M. Miyahara