1st June 2001, Mainichi Daily News

Japan, one of the world's biggest official development assistance (ODA) donors, will slash its ODA budget by at least 10 percent in fiscal 2002, government sources revealed Thursday.

The government has planned the cut, knocking off around one-tenth of the 1 trillion yen outlay for fiscal 2001, as part of its efforts to balance the debt-ridden budget.

Emphasis in ODA programs will likely shift from infrastructure projects such as roads and bridges to human resource development, according to the sources.

Finance Minister Masajuro Shiokawa has already instructed high-ranking ministry bureaucrats to study ways to reduce ODA spending. A government panel regularly reviewing the nation's ODA programs has also begun discussing where the budget can be trimmed.

Another measure will see the Foreign Ministry try to cut out wastage, caused when ministries and agencies extend similar assistance to a single country, by coordinating efforts.

Over 1 trillion yen in taxpayers' money is set aside for ODA programs in the general account of the fiscal 2001 budget -- down 3 percent from the previous fiscal year. Despite the shrinking figure, a growing number of ruling coalition politicians feel that ODA spending should not be spared the budget knife in upcoming fiscal restructuring.

Officials are also considering deeper cuts to yen-based ODA loans as recipient countries in Asia are booming economically. The government reduced its yen-based loans by 7 percent this fiscal year from the year earlier.