Public Finance Law

PUBLIC FINANCE LAW
Law No. 34, Apr. 31, 1947, Enforcement: April 1, 1947
Provisional Translation
(Extracted from the Japanese Ministry of Finance Website the way it appeared on March 4, 2011)

Amendments:
– Law No.23, 1949
– Law No.145, 1949
– Law No.60, 1950
– Law No.141, 1950
– Law No.173, 1951
– Law No.4, 1952
– Law No.268, 1952
– Law No.90, 1954
– Law No.108, 1962
– Law No.46, 1965
– Law No.55, 1978
– Law No.86, 1991
– Law No.109, 1997

Chapter I General Rules on Public Finance
Article 1 (Purpose)
The national budget and other basic matters on public finance are governed by the Public Finance Law (hereinafter referred to as the Law).

Article 2 (Definition of income and expenditure, revenue and expenditure)
(1) The term “income” as used in this Law shall mean received funds that serve as the source of payment to meet the demands arising on the various levels of the State, while expenditure shall mean disbursed funds to meet the demands arising at various levels of the State.
(2) Received funds mentioned in the preceding paragraph shall include money accrued as a result of disposition of other property or undertaking of new liabilities, while disbursed funds mentioned in the said paragraph shall include money disbursed to obtain other property or reduction of liabilities.
(3) The income and expense mentioned in paragraph (1) of this Article shall include the money carried over in the fiscal accounts or transferred within national treasury funds.
(4) The term “revenue” shall refer to all the income in one fiscal year, and “expenditure” to all the expenses in one fiscal year.

Article 3 (Public finance income and the principle of the Diet resolution)
Any surcharge except for tax which the State collects according to its sovereignty as well as any monopolistic price or charge of a service which legitimately or practically belongs to the State shall be determined in accordance with the laws or by the Diet resolution.

Article 4 (The range of the source of expenditure)
(1) National expenditure shall be compensated by the revenue excluding those from public bonds or borrowings. However, for the source of public works expenses, disbursements and loans, it shall be permissible to issue public bonds or make loans not exceeding the amount approved by the Diet resolution.
(2) In the case where public bonds are issued or loans are made according to the proviso of the preceding paragraph, repayment plans shall be submitted to the Diet.
(3) The range of public works expenses provided in paragraph (1) shall be subject to the resolution of the Diet every fiscal year.

Article 5 (Limitations on issue of public bonds and borrowings)
All the matters concerning the issue of public bonds shall be undertaken by The Bank of Japan (The BOJ), but The BOJ shall not lend money. However, in special circumstances The BOJ shall be able to lend money within the amount approved by the Diet resolution.

Article 6 (Redemption of public bonds as a result of surplus in the national treasury funds)
(1) In cases where surplus is generated in the current account in each fiscal year, an amount not exceeding half the amount of the said surplus shall, unless otherwise required by other laws, be used for the redemption of public bonds and repayment of borrowing within two years from the said fiscal year in which the surplus was generated.
(2) The calculation of surplus mentioned in the preceding paragraph shall be determined by Cabinet order.

Article 7 (The issuance of treasury bills and temporary borrowing)
(1) In cases where it is necessary for the national treasury funds, the State may issue treasury bills or make temporary borrowing from The BOJ.
(2) The issuance of treasury bills and temporary borrowing stipulated in the proceeding paragraph shall be redeemed with the revenue in the fiscal year when the bills are issued or borrowing is made.
(3) The maximum amount of the treasury bills to be issued and temporary borrowing shall be subject to the resolution of the Diet every fiscal year.

Article 8 (Elimination of bonds)
Eliminating all or part of national bonds or changing the validity of the said bonds shall be governed by the laws.

Article 9 (Disposition and management of property)
(1) National property, unless otherwise in compliance with the laws, shall not be exchanged to use for payment purposes or transferred without proper price or lent.
(2) National property shall continually be kept in best condition and managed in the most efficient manner in accordance with the purpose of possession.

Article 10 (The principle of allotment of national expenses according to the laws)
With regard to the expenses required for the certain affairs of the State, in order to allot the entire or part of the said expenses to another party apart from the State, allotment shall be conducted based on the laws.

Chapter II Account Category
Article 11 (Fiscal year)
National fiscal year commences on April 1 of every year and ends on March 31 of the subsequent year.

Article 12 (Defrayal of expenditure)
Expenditure of each fiscal year shall be defrayed by the revenue of the said year.

Article 13 (General and extraordinary accounts)
(1) The national account shall be divided into a general account and extraordinary account.
(2) Limited only to cases where the State carries out a certain program; the State possesses and manages certain funds; and the State uses certain revenue to secure special expenditure and thus needs to deal such revenue and expenditure separately from the general revenue and expenditure, a special account shall be established with legislation.

Chapter III Budget
Section 1 General Rules
Article 14 (Budget)
Revenue and expenditure of a fiscal year shall be incorporated in the budget plan.

Article 14 bis. (Continued expenses)
(1) For projects such as construction and manufacturing which require a few years for completion, in cases where it is necessary, by planning the total as well as yearly disbursements of the project, and subject to the Diet resolution previously, the State may, according to the resolution of the Diet continue disbursing over several fiscal years.
(2) The maximum number of fiscal years in which the State may continue disbursing as stipulated in the preceding two paragraphs shall not exceed five consecutive years from the relevant fiscal year. However, with the budget, and subject to the Diet resolution, the said period may be prolonged.
(3) The budget stipulated in the preceding paragraph shall be referred to as “continued expenses”.
(4) The provisions of the preceding three paragraphs shall not preclude the Diet from reviewing the said continued expenses at the deliberations on the budget after the continued expenses are established.

Article 14 ter. (Approved expenses to be carried over to the following year)
(1) The expenditure budget which is not likely to be consumed within the relevant fiscal year due to its nature or any reasons after the budget is established, subject to the Diet resolution previously, may be carried over to the subsequent year.
(2) The expenditure which may be used in the subsequent fiscal year shall be referred to as approved expenses to be carried over to the following year.

Article 15 (Act of bearing liabilities with national treasury funds)
(1) Aside from the legislative amount, the amount of expenditure budget (including the approved amount as stipulated in Article 43ter.), or the sum of continued expenses. So that the State perform the act of bearing liabilities, initially, the budget must be prepared and then it shall be subject to Diet resolution.
(2) Other than the cases stipulated in the preceding paragraph, in cases where it is required for recovery after disaster or for emergency, every fiscal year the State may perform the act of bearing liabilities within the range of the amount resolved by the Diet.
(3) The due disbursement period as a result of the State’s act of bearing liabilities as stipulated in the preceding two paragraphs shall not exceed five years from the said fiscal year. However, this shall not apply to the case where the disbursement period is prolonged according to the Diet resolution; salary and pension to be paid to foreigners; undertaking of liabilities of local public organizations; subsidizing of the principal or interest of liabilities of local public organizations; rental of land or building; contribution based on the international agreements; or any other matters stipulated by the laws.
(4) The act of the State bearing liabilities as stipulated in Paragraph (2) of this Article shall be reported to the Diet in the subsequent ordinary session.
(5) The act of the State bearing liabilities as stipulated in Paragraph (1) or (2) of this Article shall be referred to as the act of bearing liabilities with the national treasury funds.

Section 2 Budget planning
Article 16 (Contents of budget)
The budget shall consist of general provisions of the budget, revenue and expenditure budget, continued expenses, approved expenses to be carried over to the following year and the act of bearing liabilities with the national treasury funds.

Article 17 (Estimate of revenue and expenditure, etc.)
(1) The speaker of the House of Representatives, President of the House of Councilors, Chief Judge of the Supreme Court and President of the Board of Audit shall, every fiscal year, prepare documents on revenue, expenditure, continued expenses, approved expenses to be carried over to the following year and the act of bearing liabilities with national treasury funds within each jurisdiction, and submit the said documents to the Cabinet so as to help the Cabinet incorporating and coordinating the budget plan.
(2) The Prime Minister and other Ministers of the Cabinet shall, every fiscal year, prepare documents on revenue, expenditure, continued expenses, approved expenses to be carried over to the following year and the act of bearing liabilities with the national treasury funds within each jurisdiction, and send the said documents to the Minister of Finance.

Article 18 (Estimate of revenue and expenditure, etc.)
(1) The Minister of Justice shall take the estimate mentioned in the preceding Article into account and make the necessary adjustments, and prepare the estimate of revenue, expenditure, continued expenses, approved expenses to be carried over to the following year and the act of bearing liabilities with national treasury funds to be subject to the Cabinet decision.
(2) When the Cabinet intends to make the decision mentioned in the preceding paragraph, with regard to the estimate of expenditure concerning the Diet, the court and the Board of Audit, the Cabinet shall previously ask the speaker of the House of Representatives, President of the Houseof Councilors, Chief Judge of the Supreme Court and President of the Board of Audit for the opinions on the said decision.

Article 19 (Reduction of the amount of estimated expenditure of independent organizations)
In cases where the Cabinet reduces the estimated expenditure of the Diet, the court and the Board of Audit, and the Cabinet shall, with regard to the estimated expenditure of the Diet, the court and the Board of Audit, report the details of the said reduction in the revenue and expenditure budget, and also specify the necessary finance for the Diet to correct the amount of expenditure pertaining to the Diet, the court and the Board of Audit.

Article 20 (Preparation of the specification of revenue budget and request of the planned expenses, etc.)
(1) The Minister of Finance shall prepare the specification of the revenue budget every fiscal year in accordance with the Cabinet decision mentioned in Article 18.
(2) The speaker of the House of Representatives, President of the House of Councilors, Chief Judge of the Supreme Court and President of the Board of Audit, Prime Minister and other Ministers (hereinafter referred to as head of each Ministry or Agency) shall prepare, every fiscal year, the request of planned expenses, request of continued expenses, request of approved expenses to be carried over to the following year and request the act of bearing liabilities with national treasury funds (hereinafter referred to as the request of planned expenses, etc.) not exceeding the estimated amount decided by the Cabinet as stipulated in Article 18, and submit the said request to the Minister of Finance.

Article 21 (Budget planning)
The Minister of Finance shall prepare the budget plan based on the specification of revenue budget as well as the request of planned expenses, etc. of the House of Representatives, the House of Councilors, the court, the Board of Audit, the Prime Minister, the Management Coordination Agency and each Ministry (hereinafter referred to as each Ministry or Agency), and the said budget plan shall be subject to the Cabinet decision.

Article 22 (General provisions of budget)
For the general provisions of budget, in addition to comprehensive provisions with regard to the revenue and expenditure budget, continued expenses, approved expenses to be carried over to the following year and the act of bearing liabilities with national treasury funds, provisions on the following matters shall be established:
1) limit of the amount of public bonds or borrowing as provided in the proviso of Article 4 (1)
2) range of expenses for public works as provided in Article 4 (3)
3) limit of the amount of public bonds to be undertaken by The BOJ and borrowing to be made from The BOJ as provided in the proviso of Article 5
4) the maximum amount of the treasury bonds to be issued and the temporary borrowing to be made as provided in Article 7 (3)
5) limit of the amount for the act of bearing liabilities with national treasury funds as provided in Article 15 (2)
6) other than the items mentioned above, the necessary matters for the implementation of budget
7) other matters stipulated by the Cabinet order

Article 23 (Classification of budget into section, article and item)
The Revenue and expenditure budget shall be classified according to the department and division that is involved in the relevant income or expense. Within the said department and division, revenue shall briefly be categorized into sections according to the nature of revenue, and further divided into articles under such sections; whereas the expenditure shall be classified into paragraphs according to the purpose of disbursement.

Article 24 (Reserve for miscellaneous expenses)
For the purpose of compensating a shortfall in the budget which is difficult to estimate, the Cabinet shall secure the appropriate amount as the reserve for miscellaneous expenses in the revenue and expenditure budget.

Article 25 (Classification of continued expenses)
Continued expenses shall be classified according to the organization such as department and division involved in disbursement of the said continued expenses; within the said department and division, the continued expenses shall be further divided into articles; and in each article, the total amount as well as yearly disbursements of the continued expenses shall be stated and the reasons for the necessity of the continued expenses shall be clarified.

Article 26 (The act of bearing liabilities with national treasury funds)
The reason for requiring the act of bearing liabilities with the national treasury funds shall be specified for each article, and also the fiscal year in which the said act is performed as well as the amount of liabilities to be limited shall be specified. Moreover, if necessary, the fiscal year in which the said act is performed, the limit of years for disbursement or yearly disbursements shall be stated.

Article 27 (Budget Submission to the Diet)
The Cabinet shall make it a rule to submit the budget of every fiscal year to the Diet during January of the previous year.

Article 28 (Attached document to the budget)
The budget to be submitted to the Diet shall be attached to the following documents for reference purposes:
1) specification of the revenue budget
2) request of the planned expenses, etc. of each Ministry or Agency
3) statement of the total and net amount of the settled revenue and expenditure of the year before last, statement of the estimated total and net amount of revenue and expenditure of the previous fiscal year, and statement of the total and net amount of revenue and expenditure budget of the current fiscal year
4) report on the results with regard to the state of national treasury funds in the year before last, and report on the expected results with regard to the state of national treasury funds in the end of both the previous fiscal year and the current fiscal year
5) report on the results with regard to the state of national bonds and borrowing in the end of the year before last, and report on the estimated balance as well as the list of the year of redemption of public bonds and borrowing in the end of both the previous fiscal year and the current fiscal year
6) report on the balance of national property in the end of the year before last, and report on the estimated balance of national property in the end of the previous fiscal year and the current fiscal year
7) report on the state of assets and liabilities, and profit and loss, etc. of major corporations in which the State has invested, in the year before last, the previous fiscal year and the current fiscal year
8) report on the act of bearing liabilities with national treasury funds: the amount paid by the end of the previous fiscal year as well as the estimated amount to be paid for such an act, which continues to be performed over the next fiscal year; the amount to be paid in the current year and thereafter; and the overall plan and progress made, etc. regarding the project which is to be carried out over several fiscal years
9) report on continued expenses: the amount paid by the end of the year before last; the amount paid by the end of the previous fiscal year and the estimated amount to be paid; the amount to be paid in the current fiscal year and thereafter; and the overall plan and the progress made on the project 10) other necessary documents to clarify the state of public finance and the details of the budget

Article 29 (Supplementary budget)
The Cabinet may, only in the following cases, prepare a supplementary budget in accordance with the budget planning procedures and submit the said budget to the Diet:
1) in cases where an additional budget is prepared to compensate a shortfall in expenses pertaining to the duties of the state according to the laws or contracts; to pay the expenses which become particularly imperative due to the matters that arise after the budget plan is established (including the expenses which is only to be transferred within the national treasury funds in the relevant fiscal year); and to bear liabilities
2) in cases where, due to matters that arise after the budget plan is established, an amendment other than preparation of an additional budget is made to the budget plan

Article 30 (Provisional budget)
(1) The Cabinet may, as required, prepare a provisional budget plan for a certain period of time within a fiscal year and submit the said plan to the Diet.
(2) Provisional budget shall be null and void when the budget plan of the relevant fiscal year is established, and when there is disbursement or liabilities based on the provisional budget, such disbursement or liabilities shall be deemed to be conducted in accordance with the budget plan of the relevant fiscal year.

Section 3 Implementation of the budget plan
Article 31 (Allocation of budget)
(1) When the budget plan is established, pursuant to the Diet resolution, the Cabinet shall allocate to the head of each Ministry or Agency the due revenue and expenditure budget, continued expenses and the act of bearing liabilities with the national treasury funds for implementation of the said budget plan.
(2) In cases where the revenue and expenditure budget is allocated as stipulated in the preceding paragraph, articles shall be classified into items.
(3) If the allocation as stipulated in Paragraph (1) of this Article takes place, the Minister of Finance shall report this effect to the Board of Audit.

Article 32 (Prohibition of the use of budget for other purposes)
The head of each Ministry or Agency shall be prohibited from using the expenditure budget and continued expenses for other purposes than those provided in each article.

Article 33 (Transfer and diversion of budget)
(1) With regard to the expenses allocated for each department and division or the expenses for each paragraph within each department and division as determined in the expenditure budget or continued budget, the head of each Ministry or Agency shall be prohibited from transferring or diverting the said expenses among the departments and divisions or paragraphs. However, based on the necessity for implementation of the budget plan, only in cases where such a transfer or diversion was previously approved by the Diet under the budget, shall such a transfer or diversion be permissible upon obtaining the approval of the Minister of Finance.
(2) The head of each Ministry or Agency shall, with regard to the expenses for each item, without the approval of the Minister of Finance, be prohibited from transferring or diverting such expenses among the items.
(3) When the Minister of Finance approves such a transfer or diversion as provided in the proviso of (1) of this Article or the preceding paragraph, the Minister of Finance shall report the outcome to the head of each Ministry or Agency as well as the Board of Audit.
(4) The amount of expenses transferred or diverted as provided in the proviso of (1) or (2) of this Article shall be clarified in the statement of the account of revenue and expenditure, and reasons for such transfer or diversion shall also be specified.

Article 34 (Disbursement plan)
(1) The head of each Ministry or Agency shall, based on the budget allocated as provided in Article 31 (1) and according to the Cabinet order, determine the amount of disbursement for each official in charge of disbursement, prepare documents regarding the disbursement plan and send the said documents to the Minister of Finance to obtain approval.
(2) The Minister of Finance shall, in consideration of the state of national treasury funds, revenue, finance and expenses used, set policy with regard to approval for the disbursement plan and have the said policy be decided by the Cabinet.
(3) When the Minister of Finance approves the disbursement plan as mentioned in Paragraph (1) of this Article, the Minister of Finance shall report the effect of this the head of each Ministry or Agency as well as The BOJ.

Article 34 bis. (Implementation plan for the act of bearing disbursement of public works expenses, etc.)
(1) Within the expenditure budget, continued expenses and the act of bearing liabilities with the national treasury funds that are allocated as provided in Article 31 (1), in regard to the public works expenses and other expenses designated by the Minister of Finance, the head of each Ministry or Agency shall, according to the Cabinet order, prepare documents on the implementation plan for the act of bearing disbursements (referred to as the contract or act which causes national expenditure; the same shall apply hereinafter), which is performed based on the said expenditure budget, continued expenses and the act of bearing liabilities with national treasury funds. The head of each Ministry or Agency shall send the said documents to the Minister of Finance to obtain his approval.
(2) When the Minister of Finance approves the implementation plan for the act of bearing disbursements as provided in the preceding paragraph, the Minister of Finance shall report the effect of this to the director of each Minister and Agency as well as the Board of Audit.

Article 35 (Management and use of reserves for miscellaneous expenses)
(1) Reserves for miscellaneous expenses shall be managed by the Minister of Finance.
(2) The head of each Ministry or Agency shall, when the use of reserves for miscellaneous expenses is deemed necessary, prepare documents specifying reasons of use, the amount of said reserves to be used and grounds for calculation of the reserves to be used, and send the said documents to the Minister of Finance.
(3) The Minister of Finance shall prepare the specification of reserves for miscellaneous expenses by examining the requirements provided in the preceding paragraph, and by adding the necessary adjustments to the said specification, ask for the Cabinet decision. However, with regard to the expenses designated by the Minister of Finance according to the Cabinet decision previously, the said expenses shall not be subject to the Cabinet decision, and the Minister of Finance may finalize the specification of reserves for miscellaneous expenses.
(4) When the specification of reserves for miscellaneous expenses is finalized, with regard to the expenses stated in the said specification, according to the provisions of Article 31 (1), it shall be deemed that the budget has been allocated.
(5) The stipulation of Paragraph (1) of this Article shall apply to the act of bearing liabilities with the national treasury funds as stipulated in Article 15 (2); and the text of Paragraphs (2) and (3) of this Article and the provisions of the preceding paragraph shall apply to the cases where the head of each Ministry or Agency performs the act of bearing liabilities with the national treasury funds as provided in Article 15 (2).

Article 36 (Reporting on defrayal of reserves for miscellaneous expenses)
(1) With regard to the amount defrayed using reserves for miscellaneous expenses, the head of each Ministry or Agency shall prepare a report and send the said report to the Minister of Finance immediately after the opening of the subsequent ordinary session of the Diet.
(2) The Minister of Finance shall, based on the report provided in the preceding paragraph, prepare a comprehensive report on the amount defrayed using reserves for miscellaneous expenses.
(3) The Cabinet shall submit a comprehensive report on the defrayal of reserves for miscellaneous expenses as well as the report of each Ministry or Agency to the subsequent ordinary session of the Diet to obtain approval.
(4) The Minister of Finance shall submit a comprehensive report to each Ministry or Agency mentioned in the preceding paragraph to the Board of Audit.

Chapter IV Closing of accounts
Article 37 (Statement of expenditure accounts and specification of revenue accounts)
(1) The head of each Ministry or Agency shall, every fiscal year, as designated by the Minister of Finance, prepare a statement of revenue and expenditure accounts within each jurisdiction as well as a statement regarding liabilities of the state, and submit the said statements to the Minister of Finance.
(2) Based on the statement of revenue accounts provided in the preceding paragraph, the Minister of Finance shall prepare the specification of revenue accounts adopting the same categories as used in the specification of the revenue budget.
(3) The head of each Ministry or Agency shall, in cases where the projects pertaining to the continued expenses within each jurisdiction are completed, as designated by the Minister of Finance, prepare a statement of accounts for continued expenses and submit the said statement to the Minister of Finance.

Article 38 (Accounts of revenue and resource)
(1) Based on the specification of accounts of revenue as well as the statement of accounts of expenditure, the Minister of Finance shall prepare revenue and expenditure accounts.
(2) Revenue and expenditure accounts shall be prepared by adopting the same categories as used in the revenue and expenditure budget, and specify the following matters:
1) Revenue
a. revenue budget amount
b. the determined amount for collection (for the revenue amount for which collection is not determined, the amount registered as collected after payment shall be clarified)
c. amount of revenue collected
d. deficit amount due to non-payment
e. amount of revenue yet to be collected

2)
Expenditure
a. expenditure budget amount
b. amount carried over from the previous year
c. amount of reserves for miscellaneous expenses used
d. changes in the amount of expenditure due to transfer, etc.
e. amount of expenditure disbursed
f. amount to be carried over to the following fiscal year
g. amount of unnecessary expenditure

Article 39 (Sending of accounts to the Board of Audit)
The Minister of Finance shall send the revenue and expenditure accounts, together with the specification of revenue accounts, statement of expenditure accounts, statement of accounts of continued expenses and statement of liabilities of the State, to the Board of Audit by November 30 of the subsequent fiscal year.

Article 40 (Submission of accounts to the Diet)
(1) The Cabinet shall make it rule to submit the revenue and expenditure accounts which have undergone the audit by the Board of Audit to the ordinary session of the Diet to be held in the subsequent fiscal year.
(2) As for the revenue and expenditure accounts provided in the preceding paragraph, other than the report of the audit by the Board of Audit, the specification of revenue accounts, each Ministry’s and Agency’s statement of expenditure accounts, statement of accounts of continued expenses and statement of liabilities of the State shall be attached.

Article 41 (Carry-over of surplus to accounts in the following fiscal year)
In every fiscal year, in cases where surplus of revenue and expenditure is produced on accounts, the said surplus shall be carried over to the revenue of the subsequent fiscal year.

Chapter V Miscellaneous rules
Article 42 (Limits on carry-over of expenses)
Except for approved expenses to be carried over to the following year, the revenue budget of each fiscal year shall be prohibited from being used in the subsequent fiscal year. However, among the expenses of the expenditure budget, a budget that is unspent due to unavoidable circumstances and makes the act of bearing disbursements difficult (including the expenses required along with the necessity of implementation of projects such as construction, which is related to the said act of bearing disbursements) may be carried over and used in the subsequent fiscal year.

Article 43 (Approval for the use of carry-over)
(1) In cases where carry-over expenses provided in Article 14ter. (1) or the proviso of the preceding Article, the head of each Ministry or Agency shall prepare a statement of carry-over, in which reasons for and the amount of expenses to be carried over shall be specified according to the item, and obtain approval of the Minister of Finance.
(2) If the approval mentioned in the preceding paragraph is obtained, the expenditure budget pertaining to the said expenses may be carried over and used in the subsequent year, within the range of the approved amount.
(3) When the head of each Ministry or Agency carries over expenses as provided in the preceding paragraph, the head of each Ministry or Agency shall specify the amount of expenses carried over according to the item, and report the said amount to the Minister of Finance and the Board of Audit.
(4) When the expenses are carried over according to the provisions of Paragraph (2) of this Article, with regard to the said expenses, it shall be deemed that budget was allocated as provided in Article 31 (1). In this case, the report provided in Paragraph (3) of the said Article shall not be required.

Article 43bis. (Carry-over of the yearly disbursements of continued expenses)
(1) Within the revenue budget pertaining to the yearly disbursements of continued expenses of each fiscal year, the expenses which are unspent within the fiscal year may be carried over, notwithstanding the provisions of Article 42, by the fiscal year in which the project pertaining to the continued expenses is completed.
(2) The provisions of Article 43 (3) and (4) shall be applied mutatis mutandis in cases where the expenses are carried over as provided in the preceding paragraph.

Article 43ter. (Use of approved expenses to be carried over to the following year from the subsequent fiscal year)
With regard to the amount of approved expenses to be carried over from following year, in cases where there are unavoidable reasons for the implementation of the budget, the head of each Ministry or Agency shall specify such reasons and the amount of expenses to be carried over according to the item. The head of each Ministry or Agency may, upon obtaining the approval of the Minister of Finance, bear the due liabilities for the subsequent fiscal year not exceeding the approved amount.

Article 44 (Possession of special funds)
The State may possess special funds only where it is provided by the laws.

Article 45 (Exceptional rules for special accounts)
In cases where it is necessary for each special account, it shall be permissible to establish exceptional rules from the stipulation of this Law.

Article 46 (Fiscal report on state of affairs)
(1) When the budget plan is finalized, the Cabinet shall immediately report to the general public on the budget, revenue and expenditure accounts of the previous year, the current balance of public bonds, borrowings and national property, and general matters on public finance, in appropriate ways such as by announcement and printed matters.
(2) Other than those instances provided in the preceding paragraph, the Cabinet shall, at least every quarter, report to the Diet as well as to the general public on the status of the budget use, the national treasury funds and fiscal administration.

Article 47 (Cabinet order of enforcement)
The necessary matters for the enforcement of this Law shall be stipulated by the Cabinet order.
Supplementary Provisions (excerpt)
Article 1 (Enforcement date)
(1) This Law shall come into force as from April 1, 1947; provided that, the provisions of Article 17 (1), Article 18 (2), Articles 19, 30, 31, 35 and 36 shall come into force as from the Constitutional Day (May 3, 1947), and the enforcement date of the provisions of Articles 3, 10 and 34 shall be determined by the Cabinet order (that of Article 3 was enforced as of April 16, 1948, that of Article 34 was as of October 21, 1947, and that of Article 10 has yet to be enforced.)

Article 48 (Fiscal System Council)
(1) For the purposes of investigating and deliberating the crucial matters on national budget, settlement of accounts and the accounting system, the Fiscal System Council shall be established within the Ministry of Finance.
(2) The Council shall consist of no more than 25 council members.
(3) If it is necessary for the investigation and deliberation of special matters, it shall be permissible to add special commissioners to the Council.
(4) The chairman of the Council shall be elected by ballot within the Council.
(5) The chairman shall administer all the affairs relating to the Council. In the event of the chairman meeting with misfortune, the council member who was previously appointed by the chairman shall substitute the chairman to execute the duties.
(6) Council members shall be appointed by the Minister of Finance from those who are knowledgeable or experienced, and the special commissioners shall be from the staff members of the administrative organs concerned or those who are knowledgeable or experienced.
(7) The term ofa Council member shall be two years.
(8) A Council member may be reelected.
(9) Special commissioners shall be discharged when the investigation session on the relevant matter is completed.
(10) The Council members and special commissioners shall be employed on a part-time basis.
(11) Other than those stipulated in each preceding paragraph, the necessary matters for the management and operation of the Council shall be determined by the Cabinet order.