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Spending Without TaxationFILP and the Politics of Public Finance in Japan$
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Gene Park

Print publication date: 2011

Print ISBN-13: 9780804773300

Published to Stanford Scholarship Online: June 2013

DOI: 10.11126/stanford/9780804773300.001.0001

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Balancing Fiscal Policy, Industrialization, and Distributive Politics, 1953–1970

Balancing Fiscal Policy, Industrialization, and Distributive Politics, 1953–1970

Chapter:
(p.90) Four Balancing Fiscal Policy, Industrialization, and Distributive Politics, 1953–1970
Source:
Spending Without Taxation
Publisher:
Stanford University Press
DOI:10.11126/stanford/9780804773300.003.0004

This chapter covers the period from 1953 to 1970, during which the Japanese government embraced the budget restraint that had been imposed by the American Occupation and then deployed the Fiscal Investment Loan Program (FILP) to make it more palatable to the members of its conservative coalition. First, it examines how the government envisaged tapping FILP to make its political strategy consistent with its goal of limiting budget spending. Second, it analyzes how the Ministry of Finance (MOF) used FILP during the annual process of budget negotiations to limit budget outlays and to keep the budget balanced. Third, it considers a counterfactual: What would have happened if FILP had not been created?

Keywords:   Japanese government, Fiscal Investment Loan Program, fiscal policy, low budget spending, public finance

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