Chapter 1
Japan’s ODA Budget

Section 1. Fiscal Year 2003 ODA Budget (Original Budget)

Major Points in the Fiscal Year 2003 ODA Budget

• Ensure an adequate and appropriate budget for Japan to fulfill its international responsibilities
• Eliminate waste from projects by reducing project costs, and increasing the transparency.

Item	Fiscal year 2002	Fiscal year 2003	Change from fiscal year 2002-2003
ODA	¥910.6 billion	¥857.8 billion	¥52.9 billion ( 5.8%)

Ministry of Foreign Affairs (MOFA):	¥516.5 billion ( 4.2%)
Ministry of Finance (MOF):	¥237.5 billion ( 9.5%)

Response to the Current State of International Affairs like Afghanistan and others

1.	Maintenance or increase in general grant aid (excluding grant aid for debt relief) and emergency grant aid
		Increase in general grant aid (excluding grant aid for debt relief) primarily for the human security sector
		–	Establishment of grant assistance – grassroots/human security project (¥15 billion)
		–	Establishment of Water Resource Grant Aid scheme (¥16 billion)
		–	Establishment of Drug Countermeasures Grant Aid (¥1 billion)
		Maintenance of the size of the emergency relief budget (emergency contributions to support refugees, reconstruction assistance, and others) (¥22.2 billion ¥22.2 billion)
2.	Prioritized and strategic financing and contributions to multilateral institutions, etc.
		Maintenance or increase of contributions to important international organizations
		–	Voluntary contributions to the UNDP (United Nations Development Programme) (for the core fund) (¥10.6 billion ¥10.6 billion)
		–	Contributions to UNHCR (Office of the United Nations High Commissioner for Refugees) (¥9 billion ¥9 billion)
		–	Contributions to UNICEF (United Nations Children’s Fund) (¥3 billion ¥3 billion)
		Contributions to multilateral institutions with a lot of accumulated funds have been reduced (recommended by the Board of Audit of Japan)

Promotion of Aid Visibility

1.	Promotion of strengthened collaboration with non-governmental organizations (NGOs) and public participation in ODA
		Increase in Grant Assistance for Japanese NGO Projects (¥2 billion ¥2.2 billion), increase in the number of Partnership Program (46 60)
		New dispatches of Senior Overseas Volunteers (maintained at previous level of 500 volunteers), new dispatches of Japan Overseas Cooperation Volunteers (JOCV) (maintained at previous level of 1,380 volunteers)
2.	Strengthening of Measures for Foreign Students
		Increase in Japanese Grant Aid for Human Resources Development Scholarship (¥3.5 billion (480 students in total) ¥4 billion (640 students in total)
		Government-financed students (new) 5,285 (an increase of 50), honors scholarships for privately-financed students, etc. 11,250 students (an increase of 150)

Promotion of the Rationalization of Projects through Review of Institutions and Unit Costs

1.	Abolition of the Grant Aid for Debt Relief
		In response to requests from developing countries, NGOs, etc., Japan will implement relief by canceling debts in the future, as other donor countries are doing (reduction resulting from the abolition of this system ¥4.5 billion)
2.	Review of Unit Cost
		Review of Japan International Cooperation Agency (JICA) project unit costs, reduction of labor costs reflecting Recommendation by the National Personnel Authority, etc. (producing cost savings of approximately ¥12 billion)
		–	JICA flight expense ( ¥0.2 billion), consultants’ remuneration (¥1.6 billion)

Section 2. Project Budget for ODA-related Ministries and Agencies (Original Budget) and Project Outlines