ID :
177314
Fri, 04/22/2011 - 18:13
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https://oananews.org//node/177314
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ODA cut by 50.1 billion yen to raise recovery funds in extra budget
TOKYO (Kyodo) - The Cabinet agreed to cut Japan's foreign aid allocation for fiscal 2011 by 50.1 billion yen from the initially set 572.7 billion yen Friday as it approved a draft first extra budget for the year to secure funds for reconstruction work after the March 11 quake and tsunami.
Foreign Minister Takeaki Matsumoto told reporters that he ''very much regrets'' the reduction and that Tokyo will mainly slash spending for yen loans and contributions to multilateral funds in order to minimize possible negative impact on Japan's aid operations.
''We will ensure that the cut will not directly affect Japan's foreign aid operations and international commitments'' on disbursement of assistance, Matsumoto said. Bilateral assistance will remain unaffected, he added.
The minister later told a press conference that of the 50.1 billion yen to be reduced, 27.6 billion yen is the budget meant to be handled by the Foreign Ministry and 22.5 billion yen is funds for yen loans overseen by the Finance Ministry.
Matsumoto said the foreign aid will be trimmed for only one year and Tokyo will later adjust the amount of its contributions to multilateral funds and international organizations.
''I believe the international community continues to rely on Japan in addressing various challenges,'' the minister said. ''We made a very difficult decision this time, but will try to gain understanding (of aid recipients) that it was unavoidable.''
Among Japan's aid recipients, the Global Fund to Fight AIDS, Tuberculosis and Malaria, which Japan helped to establish in 2002, will be significantly affected, with 15.9 billion yen allocated in the fiscal 2011 budget entirely slashed, according to the ministry.
Matsumoto said Japan's contributions made in fiscal 2010 to the fund have not yet been used up and that the cut is not expected to cause problems immediately.
He said Tokyo will make efforts to streamline expenditures associated with aid operations. The 50.1 billion yen is a smaller cut than the over 100 billion yen reduction initially envisioned.
Some lawmakers were opposed to sharply slashing the ODA budget, saying that as many as about 140 countries and 40 international organizations have offered to help Japan deal with the twin disasters, many of them partly because they wanted to ''return the favor'' of having received aid from Tokyo.
ODA consists mainly of grants, technical cooperation and low-interest yen loans to developing countries, as well as contributions to international organizations.
Matsumoto also told the news conference that Japan will continue to promote foreign policies to secure its economic interests abroad, such as exports of its infrastructure technologies, including nuclear power generation systems.
Despite the disaster-induced crisis at the Fukushima Daiichi atomic power station, which has severely damaged confidence in Japan's technologies, the minister said Tokyo will verify the safety of its nuclear power generation systems and try to sell platforms if there are countries willing to buy them.
Foreign Minister Takeaki Matsumoto told reporters that he ''very much regrets'' the reduction and that Tokyo will mainly slash spending for yen loans and contributions to multilateral funds in order to minimize possible negative impact on Japan's aid operations.
''We will ensure that the cut will not directly affect Japan's foreign aid operations and international commitments'' on disbursement of assistance, Matsumoto said. Bilateral assistance will remain unaffected, he added.
The minister later told a press conference that of the 50.1 billion yen to be reduced, 27.6 billion yen is the budget meant to be handled by the Foreign Ministry and 22.5 billion yen is funds for yen loans overseen by the Finance Ministry.
Matsumoto said the foreign aid will be trimmed for only one year and Tokyo will later adjust the amount of its contributions to multilateral funds and international organizations.
''I believe the international community continues to rely on Japan in addressing various challenges,'' the minister said. ''We made a very difficult decision this time, but will try to gain understanding (of aid recipients) that it was unavoidable.''
Among Japan's aid recipients, the Global Fund to Fight AIDS, Tuberculosis and Malaria, which Japan helped to establish in 2002, will be significantly affected, with 15.9 billion yen allocated in the fiscal 2011 budget entirely slashed, according to the ministry.
Matsumoto said Japan's contributions made in fiscal 2010 to the fund have not yet been used up and that the cut is not expected to cause problems immediately.
He said Tokyo will make efforts to streamline expenditures associated with aid operations. The 50.1 billion yen is a smaller cut than the over 100 billion yen reduction initially envisioned.
Some lawmakers were opposed to sharply slashing the ODA budget, saying that as many as about 140 countries and 40 international organizations have offered to help Japan deal with the twin disasters, many of them partly because they wanted to ''return the favor'' of having received aid from Tokyo.
ODA consists mainly of grants, technical cooperation and low-interest yen loans to developing countries, as well as contributions to international organizations.
Matsumoto also told the news conference that Japan will continue to promote foreign policies to secure its economic interests abroad, such as exports of its infrastructure technologies, including nuclear power generation systems.
Despite the disaster-induced crisis at the Fukushima Daiichi atomic power station, which has severely damaged confidence in Japan's technologies, the minister said Tokyo will verify the safety of its nuclear power generation systems and try to sell platforms if there are countries willing to buy them.
