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Active public investment was started in FY 1977 to boost the economy by
stimulating domestic demand. In FY 1979, public investment was increased by
22.5% over the preceding fiscal year to ￥6,300 billion (initial budget) in terms
of general public works expenditure in the general account, in order to ensure
further self-feeding expansion of the economy. Of this, 35.5% was earmarked
for public works related to transportation (ports and harbors, airports and
roads).
Public investment related to transportation in FY 1979, including special
account expenditure, treasury investments and loans, and local works expenditure
as well as general public basis; for railways only (accounts settlement basis),
up 7.7% over the preceding fiscal year. This was much smaller than the rate
of increase in the preceding two years (23,5% in FY 1977 and 18.9% in FY 1978).
(See Table 6, Fig. 1 cf. Table
7)
In FY 1979, private equipment investment in all industries showed a 14.6% increase over the previous year, the same steady growth as in FY 1978. Of special note was the fact that equipment investment of the manufacturing industry, which had slackened since the first oil crisis, showed a 22.89% growth in FY 1979. This was a major contributing factor in expanding Japanese economy. The transport and communication industries were a year behind all industries averaged, in the trend of equipment investment, hitting the bottom in FY 1976 and recording a larger growth than the average growth of all industries in FY 1978 and 1979.
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