ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronEye IconIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailMenu BurgerPositive ArrowIcon PrintIcon SearchSite TitleTitle ChevronIcon Twitter
Economy

Abe's Cabinet approves reworked FY 2019 budget after jobs data snafu

TOKYO (Kyodo) -- The Cabinet of Prime Minister Shinzo Abe approved Friday a draft budget for fiscal 2019 that had to be reworked to add 650 million yen ($6 million) in costs arising from the labor ministry's publishing of faulty jobs data.

The update of the spending plan, necessary due to a bureaucratic error, sets an embarrassing precedent for the government. The additional costs will be tacked on to a record 101.46 trillion yen that has been allocated to the general-account budget.

The earlier version of the budget was approved by the Cabinet in December and was ready to be submitted to the upcoming Diet session.

That changed after the Ministry of Health, Labor and Welfare was revealed to have published its monthly labor survey without having collected sufficient data over a 15-year period.

The lack of data meant nationwide wage figures were calculated as lower than they actually are. Because the figures are used as the basis to decide benefits including unemployment insurance and workers' compensation, the government failed to pay a total of more than 56 billion yen to over 20 million people.

Including related costs such as for updating computer software, total costs from the faulty jobs data will come to 79.5 billion yen, according to government officials.

The bulk of that amount will be paid out of a special account budget that is funded by insurance premiums, in contrast to the general-account budget which is mainly funded by taxes and debt, the officials said.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Get Unlimited access

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends June 30th

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to the Nikkei Asian Review has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media