Title:   NSF/Tokyo Report:  Proposed Supplemental Budget Increases FY 1998,
           S&T Funding Level by 20.3%
Date:    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                                       June  8, 1998


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

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