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Japan's Fiscal CrisisThe Ministry of Finance and the Politics of Public Spending, 1975-2000$
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Maurice Wright

Print publication date: 2002

Print ISBN-13: 9780199250530

Published to Oxford Scholarship Online: October 2011

DOI: 10.1093/acprof:oso/9780199250530.001.0001

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The Role and Influence of the LDP in the Budgetary Processes

The Role and Influence of the LDP in the Budgetary Processes

(p.365) 20 The Role and Influence of the LDP in the Budgetary Processes
Japan's Fiscal Crisis

Maurice Wright

Oxford University Press

The management and manipulation of budget outputs in Japan helped the Liberal Democratic Party (LDP) to maintain itself in power for thirty-eight years until 1993 and, less certainly, after its return to the leadership and domination of the coalition governments from 1996. Through governmental and party organizations, the LDP had begun to play a more active and interventionist role in policy-making generally from the early 1970s. Opportunities for the LDP to influence those processes and their outputs occurred at four main stages: first, at the time of the formulation of the overall budget strategy, and the prescription of the ceilings for the General Account and Fiscal Investment Loan Programme Budgets; second, at the stage of compiling budget requests within each Spending Ministry and Agency; third, after the submission of formal budget requests, at the successive stages of hearing, examination, negotiation, and ‘revival’ conducted by the Ministry of Finance's Budget Bureau; and fourth, at the point of delivery of benefits, services, investments, grants, subsidies, and so on.

Keywords:   Liberal Democratic Party, budgetary processes, budget strategy, budget ceilings, Fiscal Investment Loan Programme, budget requests, Ministry of Finance

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