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(No.1 High-Tech News Site in Japanese)

  • JEIDA Urges Gov't Supplementary Budget of 8 Trillion Yen
  • October 16, 1998 (TOKYO) -- The Japan Electronic Industry Development Association (JEIDA) will recommend that the government devote a total of 8 trillion yen (US$67.4 billion) to its secondary supplementary budget for fiscal 1998 to stimulate the country's information and communications industry.
    A JEIDA official said the underlying reason for more investment in the information and communications industry is to boost Japan's economic prospects.

    According to JEIDA's estimate, the information and communications industry's effect of boosting national production is about 1.3-times greater than that produced by conventional public works projects.

    The association said that the industry-related annual public works projects of 4 trillion yen through 2001 will create 1 million jobs.

    In the fiscal 1998 budget, the government initially allocated 250 billion yen to the industry. It then added 750 billion yen in the first supplementary budget, so that the total amounts to 1 trillion yen. The proposal is for an additional investment above the 1 trillion yen.

    Of the 8 trillion yen secondary supplementary budget, purchases of personal computers for all elementary and junior high school teachers accounts for 3.1 trillion yen and introduction of information systems among local governments accounts for 1.2 trillion yen.

    The information and communications-related budget will first be allocated to the Ministry of Education, the Ministry of International Trade and Industry and other ministries and agencies. The budgetary funds will then be allocated to schools and relevant companies by the Information Technology Promotion Agency, Japan (IPA) and other ministry-affiliated organizations.

    (BizTech News Dept.)

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    Updated: Thu Oct 15 14:26:16 1998 PDT