The Mainichi Shimbun answers some common questions readers may have about why some people in Japan have called for dismantling the Ministry of Finance.
Question: I hear there are people calling for the dismantling of the Finance Ministry? Is this true?
Answer: Yes. The Ministry of Finance (“Zaimu-sho” in Japanese), which manages national taxes and their allocation, is facing such calls online. A book that criticizes the state of the public being “brainwashed” by the ministry’s ideas, labeling it “Zaimu Shinrikyo,” likening it to a cult, has become a bestseller, and some people are even staging protests.
Q: What criticisms are being leveled against it?
A: The concept of fiscal rehabilitation, aimed at curbing wasteful government spending, increasing tax revenue and reducing government debt, is being blamed for stalling the Japanese economy. There are accusations that the Finance Ministry uses influential politicians and the media to steer the nation in that direction. Additionally, there is a lot of criticism without clear evidence, such as claims that retired ministry officials are distorting economic policies through “amakudari,” the practice of securing postretirement jobs in private companies.
Q: Would it really be OK to dismantle the ministry?
A: The national budget is based on tax revenue, and while funds are limited, elected politicians tend to favor policies that are popular among the public, like tax cuts. The debt used to cover budget shortfalls continues to grow, and sometimes the Ministry of Finance needs to play the unpopular role of tightening the national purse strings.
Q: What can the ministry do to avoid calls for its dismantlement?
A: A steady effort to alleviate public distrust is essential. This involves providing thorough explanations to the public not only about the tax system and Japan’s fiscal condition but also about the current state of “amakudari,” thereby enhancing transparency.
(Japanese original by Yuhi Sugiyama, Business News Department)
