[Provisional Translation]

Prime Minister Shinzo Abe held the 18th meeting in 2015 of the Council on Economic and Fiscal Policy, and the 1st Joint Thematic Meeting of the Council on Economic and Fiscal Policy and the Industrial Competitiveness Council, at the Prime Minister's Office.

At the meeting, there was a discussion on the “Basic Principles of FY2016 Budget Formulation (Framework),” “towards a robust economy that gives rise to hope ,” and “establishing the fundamental principles of the TPP policy guidelines.”

Based on the discussion, the Prime Minister said,

“In order to achieve the largest GDP in postwar history of 600 trillion yen in five years’ time, there is a need for real GDP growth of over 2% and nominal GDP growth of over 3%. In particular, private-sector demand, such as consumption and capital investments, which accounts for almost 80% of the GDP, must have sustainable growth. To that end, it is essential that corporate profits are bound together with capital investments and wage increases.

Regarding corporate tax reform, it is certain that the government will further increase the range of reduction of the corporate tax rate in FY2016, paving the way to a reduction in the 20%~29% range at an early date. Moreover, in regard to next year’s wage increases and raising the minimum wage, we will create an environment that will allow for the realization of the proposals from the private-sector members.

I would like companies to work in alignment with these government measures to implement capital investments and wage increases.

I would like Minister Amari to continue exerting his efforts to compile the “Countermeasures for Urgent Issues” by the next meeting of the Council on Economic and Fiscal Policy, in coordination with the relevant ministers and other relevant officials, and taking into consideration the discussion today.

The fundamental principles of the TPP policy guidelines, which will be compiled by the latter part of this month, must be comprehensive, clearly linking the benefits of the TPP directly to Japan’s economic revitalization and regional vitalization while dispelling the doubts and concerns of the Japanese people.

I would like Minister Amari to work on this initiative, taking into consideration today’s proposals from the private-sector members.

In regard to the Basic Principles of FY2016 Budget Formulation, based on the framework proposed today, I would like a draft to be put forward at the next occurrence of this meeting, and discussions to be held on it. Thank you.”