An advisory panel urged the government Friday to overhaul and streamline its 31 special budgetary accounts -- known to be a swamp of wasteful spending -- to help save money and rebuild the debt-ridden public finances.
"Fundamental reforms are indispensable," the Fiscal System Council said in a report to the finance minister. "The Finance Ministry and other government agencies should seriously reflect on wasteful-spending scandals that have repeatedly emerged."
Specifically, the panel said the four special accounts for public works, involving roads, rivers, airports and harbors, should be amalgamated. Eleven other special accounts should be privatized or transferred to independent administrative agencies, while six should be absorbed into the general account, the report says.
The national pension account should be merged with the employee pension account, the labor insurance account with the seamen's insurance account, and the electric power development promotion account with the energy demand and supply improvement account, it says.
The panel also recommended that tax revenue designed for road construction and other special purposes be made available for general purposes.
Chuo University professor Toshiki Tomita, who headed the council's subcommittee on special accounts, told reporters the accounts protect the vested interests of ministries and agencies.
"From the viewpoint of the general public, they're problematic," he said.
Based on the panel's report, the government and ruling bloc will develop an outline on special-account streamlining by the end of the year.