Political funds flowing into the coffers of political parties and political organizations nationwide in 2004 totaled 290.8 billion yen, down 9.8 percent from 2003. Of that amount, revenue collected by local party chapters and organizations came to 152.7 billion yen, a decrease of 16.3 percent from the previous year. This is the second time -- the first was in 2002 -- that the total has fallen under 300 billion yen since Japan's financial "bubble" burst.

This decline occurred as public criticism mounted against the concealed donation of 100 million yen from the Japan Dentists Federation to the former Hashimoto faction of the Liberal Democratic Party (led by former Prime Minister Ryutaro Hashimoto). The brouhaha surrounding this incident likely led companies and business associations to reduce donations.

Furthermore, in the special session of the Diet convened after the Sept. 11 general elections, lawmakers passed a revision of the Political Funds Control Law that places an upper limit of 50 million yen on donations between political organizations. To ensure transparency, bank transfers -- rather than cash -- have been made obligatory when political-fund organizations of parties receive or give donations.