Until the Democratic Party of Japan became the ruling party, maximum class size was 40, and the DPJ changed it to 35 in order to address the bullying problem. But the finance ministry says that bullying incidents have increased slightly since class sizes were reduced, so obviously it has had no effect.
Obviously, this sounds more like something the education ministry should tackle, and, predictably, the education ministry objects to the recommendation, saying that increasing class number back to 40 runs counter to world trends, which favor smaller class sizes so that students can get more individual attention from teachers.
The finance ministry has countered the objection by saying that the money saved by increasing class size can be spent on "pre-schoolers," since the education ministry is now promoting tuition-free pre-schools for some households but have no budget for it.
As several other media have pointed out, the finance ministry isn't really interested in education programs. It is simply moving the money from one area to another. It's a matter of bookkeeping.
The ministry's justification for cutting teachers is also problematic. It says that Japanese public school teachers' salaries are higher than they are in other countries, which is a conveniently misleading truth. The salary of a median age 45-year-old full-time public school teacher in Japan is about Y7 million, though a 2010 OECD survey found that Japanese teachers made on average the equivalent of $44,337 a year, which is $7,000 more than the OECD average. That's probably what the finance ministry is talking about.
What the ministry doesn't mention is that this average salary was 8.6 percent less than it was in 2000, which is perhaps a reflection of the fact that more teachers are now non-regular part-timers. Moreover, as a percentage of total public spending on education, teachers' pay in Japan is higher than it is in other developed countries - 86 percent compared to 81 percent in the U.S. and 67 percent in the U.K. - and as a portion of GDP Japan's spending on education is the lowest of the 31 OECD countries, and has been for five years running.